Decmil reports 58% profit increase

Civil engineering and construction company Decmil Group has reported a $14.2 million interim net profit, an increase of 58 per cent on the prior half year.

Decmil's revenue reached $233.7 million, an increase of 57 per cent on the previous corresponding period's $149.2 million.

Perth-based Decmil said the higher sales activity was driven by the strong performance of its subsidiary, Decmil Australia.

The company received $93 million in contract extensions over the half year.

"The delivery of key contracts during the first half has firmly cemented Decmil's market position as a leading engineering and construction company with blue chip clients," Decmil chief executive Scott Criddle said.

"It provides the Group with a solid platform to further capitalise on the strong pipeline of contracts to be awarded in our key target markets of resources, oil & gas and infrastructure over the next 12 months."

"The company's strategy over the past two years to focus on organic growth and strengthen relationships with blue chip clients has translated into strong results in the first half of the 2011 financial year" Mr Criddle said.

Decmil said its order book had swelled to more than $200 million for the second half of 2010/11.

"Decmil expects that, with its current business activity and level of work in hand, the company's second half sales revenue and earnings will be similar to those of the half year," the company said.