Forge Group has announced it made a net profit of $29.5 million for the 2010 financial year, an increase of 89 per cent.
Forge Group has announced it made a net profit of $29.5 million for the 2010 financial year, an increase of 89 per cent.
The company's revenue for the financial year was $247.2 million, compared to $168.8 million for the previous corresponding period.
Forge announced a fully franked dividend of 5 cents per share.
During the 2010 financial year Clough became a 31 per cent shareholder in Forge and CEO John Smith joined the company's board.
In its preliminary final report Forge said further revenue growth necessitated a substantially increased investment in company owned plant and equipment.
See Forge Group's operational and financial review below:
Forge acts as the holding company for investments in engineering, construction, procurement and construction management and maintenance.
Forge Group Ltd (Company) is pleased to report an 89% increase in reported net profit after tax of $29.5m (previous year's growth 100%) with a corresponding basic earnings per share of 41.66 cents. At yesterday's closing share price of $3.15, this represents a historical price earnings ratio of 7.6 times (x). Revenue for FY 2010 was $247.2m compared to the previous corresponding period of $168.6m, an increase of 47%.
The company announces a fully franked 5 cent per share final dividend with a record date of 10th September 2010 and a payment date of 24th September 2010.
Other operational and financial highlights for FY2010 include:
- Internationally renowned engineering and construction company Clough Ltd became a 31% shareholder and their CEO Mr. John Smith joined the Board.
- The company completed a $20 million capital raising at $1.90 per share.
- Payment of an inaugural interim fully franked dividend of 2 cents per share.
- Record net profit before tax of $40.4m, up from $16.5m, an increase of 144% (previous years growth 80% up from $9.18m)
- Year on year (30th June) share price appreciation from $0.45 to $2.69, an increase of 496%, ranking the company as one of the best performing stocks on the ASX.
- Continuing roll out of the strategic plan with commencement of an Electrical and Instrumentation division.
Further revenue growth necessitated a substantially increased investment in company owned plant and equipment. This contributed to the maintenance of above average industry margins while future proofing the business for higher levels of construction activity.
Major acquisitions in this regard included a Kobelco 250 tonne crawler crane ($1.8m), Tadano rough terrain cranes ($1.1m), a Grove 55 tonne rough terrain crane ($600k), concrete pump trucks ($1.2m), light vehicles ($600k), Franna mobile cranes ($2.4m), girth welding equipment, trucks, excavators, bob cats and telehandlers. Over $8.3m of the $12.7m spent throughout the year was funded via cash reserves with the balance of $4.3m being funded through hire purchase facilities. Given HP repayments equaled HP funding during the year, company borrowings on plant and equipment remained at just over $6m, being the same as last year.
Cimeco's performance for 2009/10 has been very strong with construction activity across all disciplines contributing significantly to group earnings. Abesque Engineering Ltd also enjoyed a busy year as project development activity in the resource sector increased on the back of continued improvement in commodity prices and project funding. The group's West African operations (Webb Construction) also expanded from its Ghanaian base into the burgeoning markets of Burkina Faso and Mali.
