Decmil continues run of profit growth

Engineering and construction firm Decmil Group has lodged a net profit increase of 79 per cent for the half year ended December 31, shrugging off a slowdown across some of its operations.

The company today reported half year net profit of $44.1 million, including a $20.8 million gain from the company’s acquisition of the remaining 50 per cent it did not already own in an accommodation village in Gladstone, Queensland.

Revenue came in at $332.9 million, up 58 per cent on the previous corresponding six months.

Decmil will pay shareholders an interim dividend of 4 cents per share.

Chief executive Scott Criddle said the company’s key operating division, Decmil Australia, had continued to hit its targets over the half year.

Mr Criddle said Decmil secured contract awards and extensions of around $150 million over the period.

“We have also started to see the benefits of increasing our investment in a major accommodation facility in Queensland to 100 per cent during the period, with HomeGround Gladstone now delivering recurring revenue, earnings and cash flow to the group,” he said in a statement.

“While there has been something of a slowdown in some of the sectors we service over the past few months, our strategy of building a diversified service offering to our clients has provided the basis for these continued strong results.”

At 12:00PM, WST, Decmil shares were up 2 per cent, trading at $2.45.