Diploma continues profit rebound

Property development and construction company Diploma Group has recorded a 194 per cent lift in net profit compared with the previous financial year, continuing its run of recovery.

Diploma said its revenue for the 2013-14 financial year was $195.3 million, a 20 per cent lift on 2012-13, while its net profit was $4.7 million.

The result is a significant rebound from 2012-13, when the company slumped to a $15.5 million full-year net loss.

In the first six months of 2013-14, Diploma’s net profit came in it at $1.6 million.

Diploma said its construction division completed seven projects in 2013-14, with a combined contract value of $267 million.

The company secured a further four deals collectively worth $7 million, while its work on hand totals around $180 million.

High-profile projects completed over the financial year include the One on Aberdeen joint venture with the Department of Housing, with all 161 apartments in the $73 million project having been pre-sold.

Diploma has also sold all of the apartments at its $32 million Abode joint venture with the Department of Housing, with that West Perth project set to be completed by February next year.

Diploma’s stock was steady at 4.5 cents in early trade today, after gaining 12.5 per cent following its profit announcement yesterday.