28/06/2016 - 11:29

Diversification drives Otoc's earnings

28/06/2016 - 11:29

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Diversified contractor OTOC has flagged record earnings for FY16, on the back of acquisitions made during the year and two big contract wins.

Otoc chief executive Simon Thomas. Photo: Attila Csaszar

Diversified contractor OTOC has flagged record earnings for FY16, on the back of acquisitions made during the year and two big contract wins.

Perth-based Otoc expects to report underlying earnings before interest, tax, depreciation and amortisation of $15.2 million for the financial year, up 253 per cent on the $4.3 million it achieved in FY15.

Chief executive Simon Thomas said the result was a combination of the group’s business divisions achieving strong operational and financial results.

“Otoc’s impressive delivery of the largest integrated off-grid solar and battery storage facility in Australia and ongoing civil infrastructure work at Nauru Island, across a reduced cost base, has resulted in a marked improvement in EBITDA for the financial year,” Mr Thomas said.

“Our strategy, to create a quality national survey and spatial solutions company, has advanced during the year both through the acquisition of a premium survey business in a key geographic market and the closer integration and working relationships between our incumbent businesses.

“We also continue to monitor and assess further acquisition opportunities to consolidate this highly fragmented sector.”

Mr Thomas said the company now had significant market coverage, and was well placed to benefit from forecast growth in the property and civil infrastructure sector on the east coast.

Otoc lifted revenue 91 per cent to $62.5 million in the six months to December, with net profit soaring to $14.3 million (up from a $1.7 million loss in the previous corresponding period).

The company’s infrastructure division, in collaboration with German company juwi Renewable Energy, recently completed a $40 million solar power facility at Sandfire Resources’ DeGrussa copper-gold mine.

Otoc also further grew its presence on the east coast in March, with the acquisition of Sydney-based land surveying firm Linker Surveying adding to the company’s pool of surveying subsidiaries including Whelans, Bosco Jonson, Geo-Metric Surveying ant THG.

Otoc shares were 19.4 per cent higher to 21.5 cents each at 11:30am.

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