Civmec profit rises to $17.5m

Contractor Civmec has raised its final dividend payout after reporting its profit had more than doubled to $17.5 million for the full financial year.

Civmec grew profits by 150 per cent in the 12 months to June 30, while underlying earnings rose by 60 per cent to $38.5 million, with the Henderson group noting a strengthened order book of $900 million.

Its revenue fell by 20 per cent to record $391 million for FY20.

However, chief executive Pat Tallon said Civmec had already secured an even greater workload for the current financial year.

“Starting the new year with a strong order book across all disciplines we operate in will allow us to maintain our focus on sustainable growth in both revenue and earnings in the year ahead, with our secured workload for FY21 already greater than our FY20 revenue of $391 million,” he said.

Mr Tallon said Civmec’s disciplined approach towards its balance sheet had enabled the company to raise its dividend payout to 1 cent per share, up from its last dividend of 63 cents.

He said strong cash flow from operations of $95.2 million (up 20.6 per cent on FY19) funded the completion of Civmec's new assembly and sustainment hall in Henderson earlier this year.

Civmec shares opened 13 per cent higher to 47 cents, but have since pulled back to 40 cents, down 3.6 per cent on yesterday’s close.