Clough turns FY07 loss to $67m profit

Engineering company Clough Ltd has turned around its 2007 financial year loss into a net profit of $67 million while its order book stands at $1.2 billion.

The Perth-based firm's net profit follows a $105 million net loss from the previous year.

Revenue for fiscal 2008 was up from $580 million to $769 million and directors have declared a fully franked dividend of 1 cent.

Services to the oil and gas industry received the biggest boost over the 2008 financial year, achieving a segment result of $38 million, up from the previous year's loss of $110 million.

Meanwhile its minerals and infrastructure arm achieved a segment result of $36 million, up from $16 million while its property division was up slightly from $1.4 million to $1.7 million.

"It was imperative this year that we delivered our projects well and profitably for customers, employees and shareholders alike," chief executive John Smith said.

"I'm delighted to say that we have done that whilst at the same time building a well balanced Order Book.

"We have focused this year on getting strategic clarity, strengthening our organisation and nurturing our core Engineering, Procurement and Construction skills for the long term.

"The year end Order Book of $1.2 billion provides $600m of order coverage for our 2008/09 Revenues which are expected to be augmented from a further $200m of work awarded subject to contract finalisation since year end."

Total equity at the end of the year was up from $63 million to $183 million.

"The fundamentals in our chosen markets are solid, despite the uncertainty in the global
finance sector and we have sight of a wealth of opportunities, particularly in the gas markets in Australia and across the region," added Mr Smith.

"In the coming year we will continue to build capacity by focusing on recruitment and training and through our investment in equipment."

Shares in Clough were down 1c to 65c at 12:16 AEST.