GCS reports fall in half-year profit

Global Construction Services has reported a $9.35 million interim profit in the face of a challenging market and uncertain economic conditions.

GCS today said revenue for the half-year to December 31 was down 8 per cent to $96 million, contributing to the 26 per cent fall in net profit.

The company will pay an interim dividend of 2 cents per share.

“The board anticipates the second half of FY13 will deliver an improvement in performance as GCS capitalises on the significant investment pipeline which is earmarked in Western Australia,” the company said in a statement.

GCS said its resources and industrial division experienced solid growth over the period, but its residential division was static as the WA housing market continued to show signs of weakness.

The company said it also expected growth in its commercial construction division, but cautioned project delays and general caution in the sector was having a negative impact.

At close of trade today, GCS shares were down 3.2 per cent, trading at 75 cents.