GCS raises FY08 profit forecast to $9.5m

Redcliffe-based construction services group, Global Construction Services Ltd has today announced a revised full year net profit forecast of $9.5 million for the year to 30 June 2008.

This compares to the profit forecast of $8.2 million in the company's 2007 prospectus.

The announcement is pasted below:

Global Construction Services Ltd today has announced a revised profit guidance for the year to 30 June 2008.

Following a review of the company's trading performance and prospects for the balance of the 2008 financial year, GCS is now forecasting a full year net profit of $9.5 million.

This compares to the profit forecast of $8.2 million in the Company's 2007 prospectus.

The revised forecast net profit of $9.5 million equates to earnings per share of 14.5 cents (prospectus forecast 12.5 cents).

GCS Managing Director Enzo Gullotti said the revised profit expectation had been driven by strong performances from all divisions, including growth from the company's recent acquisitions in the construction services sector.

Since listing on the ASX in August 2007, GCS has acquired and integrated four additional businesses in the construction services sector for a total consideration of $17.8 million.

In January 2008, the Group expanded into the North-West of Western Australia with the launch of a new business division in Karratha, providing greater exposure to the opportunities in the booming mining sector.

Mr Gullotti said GCS Group's pipeline of projects and tender opportunities positioned the group well for continued strong revenue and earnings growth in FY09.