20/02/2014 - 12:11

Decmil half-year profit up 10%

20/02/2014 - 12:11

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Engineering and construction contractor Decmil Group has posted a 10 per cent increase in half-year profit, despite reporting a decline in revenue.

Decmil half-year profit up 10%
Decmil chief executive Scott Criddle.

Engineering and construction contractor Decmil Group has posted a 10 per cent increase in half-year profit, despite reporting a decline in revenue.

Decmil posted a net profit of $25.7 million in the six months to December 2013, compared with $23.3 million in the previous corresponding period.

The 2012 figure does not include a one-off $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.

Decmil's half-year revenue was down 20 per cent at $263.4 million, with the company attributing the softer result to tighter conditions in the construction and engineering sectors.

However the company said its Homeground Villages worker accommodation business had delivered a stronger contribution to the group's earnings.  

Its earnings before interest, tax, depreciation and amortisation were up 16 per cent to $41.6 million.

Decmil chief executive Scott Criddle said a focus on productivity within the group's construction and engineering division had maintained margins.

He said the company would continue to seek work in new markets, pointing to the group's recent success in delivering contracts in the Northern Territory and Papua New Guinea.

"Whilst tendering is still competitive, Decmil enters the second half of the 2014 financial year with a healthy order book and a strong net cash position," Mr Criddle said.

"We will continue to focus on productivity, margin and cash generation and execute our diversification strategy."

Decmil's order book to June 30 currently stands at about $314 million, with a further $283 million extending into the 2015 financial year.

The company will pay out an interim dividend of 4.5 cents.

Decmil shares were up 1 cent at $2.06 at 12:07pm WST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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