18/02/2013 - 11:06

Forge reports solid jump in half year profit

18/02/2013 - 11:06

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Forge Group managing director David Simpson.

Engineering, mining services and construction outfit Forge Group has exceeded its own expectations by delivering a 60 per cent increase in half-year net profit.

Forge today reported a net profit after tax of $33.9 million for the six months ended December 31, up from $21.3 million in the first half of FY2012.

The company flagged a profit improvement of between 28 and 43 per cent in December last year.

Revenue for the half year came in at $503 million, up 123 per cent on the previous half year’s $225.9 million.

Forge will pay a fully franked interim dividend of 10 cents per share.

Managing director David Simpson said Forge secured around $462 million in new contracts over the half year, and the company’s current order book stood at $1.04 billion as of January 23.

“By every measure, this is a solid first half performance for Forge Group, and it reflects the integrated contributions from our four divisions which are all trading well,” Mr Simpson said in a statement.

“During the half we took the decision to re-brand our four operating business units under one unified and distinct brand, Forge Group.

“This positions us well for the future, and it will be instrumental in helping us attract talented people to the company and build on our growing blue chip customer base.”

Mr Simpson said the company was on track to lodge a full year, pre-tax profit of between $90 million and $100 million, with revenue reaching between $950 million and $1 billion.

“Our main priority for the compnig months is to ensure we achieve excellent project delivery across all of our divisions,” he said. “WE will also place continued emphasis on growing our asset management capabilities where we can see real growth potential.

“We are broadening our presence in the eastern states of Australia, where we are successfully delivering projects in the power and minerals and resources sectors.”

At 11:00AM, WST, Forge shares were up 6.2 per cent, trading at $6.37.

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