Diploma's net profit skyrockets

Despite a volatile market in the second half of the 2008 financial year, the full year net profit in construction company Diploma Group Ltd has soared over 290 per cent, boosted by the early settlement of the Probuild joint venture agreement.

The company today reported a net profit of $7.6 million, up from the previous year's $1.9 million and above the prospectus forecast of $7.1 million. The company listed in December last year.

Diploma attributed the net profit result to continued strong performance in the construction division and a $7.6 million pay out from Probuild Constructions (Aust) Pty Ltd, when a JV agreement was terminated in September last year.

Revenue for the period rose 71 per cent to $90.5 million and the directors have declared a final dividend of 2 cents per share.

Over the year, Diploma established two new divisions, engineering and facilities management, and has also set up an office in the United Arab Emirates where a number of opportunities are currently being closely considered.

Executive chairman Dominic Di Latte said the company has started 2009 with a strong construction order book of over $400 million and a number of property developments are expected to be completed within the 2008 calendar year.