Monadelphous Group today announced a net profit of $12.5 million for the half year ended December 31, 2005, and directors have forecast total revenues of $500 million for the full year.
Monadelphous Group today announced a net profit of $12.5 million for the half year ended December 31, 2005, and directors have forecast total revenues of $500 million for the full year.
The result represented a 56 per cent increase of the previous six month period, and an increase in net profit of 101 per cent over the corresponding period last year, as the group maintained its record year-on-year profit growth.
Revenues for the reporting period were up 22 per cent to $243 million.
Another highlight was cash flows from operating activities increasing from the previous figure of $15.6 million to a record $37.1 million.
Monadelphous managing director Rob Velletri said record levels of resources sector development activities continued to drive strong demand, with a pipeline of projects mainly in Western Australia and Queensland.
"This is providing numerous opportunities for both our Engineering Construction and Maintenance and Industrial Services divisions. Margins should continue to improve from the favourable market conditions and increasing economies of scale," he said.
"The market outlook is forecast to remain positive for the next two to three years."
Sales revenue from the Maintenance and Industrial Services division increased 66 per cent to $112.8 million for the half-year period, largely based on flow through effects of contracts secured in the previous financial year.
The company's Skystar Airport Services ground handling business is on track to achieve a more than doubling of revenue to $15 million for the full year, and with new contracts in place may even reach $20 million.
All Engineering Construction division projects continued to deliver solid operational performance and revenues of $130.6 million were recorded for the six-month period.
Around $200 million of major new contracts have been secured by the division since December 2005, providing momentum for further revenue growth in engineering construction in the second half.
Mr Velletri said skilled labour shortages continued to be an issue for the company and the company was looking at strategies to attract and retain the right people.
Overseas recruitment for professional engineering personnel was conducted during the period - in the UK, Canada and South Africa.
On the back of the results, Monadelphous declared an interim dividend of 9 cents per share fully franked, an increase of 71 per cent.
