GR Engineering boosts half-year profit

Belmont-based contractor GR Engineering Services has lifted its half-year net profit despite what it described as persistently subdued trading conditions in the mining services sector.

The company announced a net profit after tax of $7.3 million in the six months to December 2013, a solid gain on the $1.3 million profit recorded in the previous corresponding period.

Its revenue however came in 12 per cent lower at $49.7 million, which the contractor attributed to delays in project commencements.

The company's order book was last year bolstered by a £75 million ($139 million) contract for engineering, procurement and construction at Wolf Minerals' Hemerdon tungsten and tin mine in England.

GR Engineering has also been appointed as the preferred contractor at MZI Resources' Keysbrook mineral sands project south of Perth.

The project is expected to be completed on an EPC basis with a contract value of about $55 million.

GR Engineering managing director Geoff Jones said the company had produced a solid result amid difficult trading conditions.

 "We have achieved significant improvements in our cash flow, earnings and net profit over the same period last year despite the lower revenue, largely as a result of diligent contract management and cost control," he said.

"Our assessment of work on hand indicates improved revenues and consistent financial outcomes for the balance of FY14."

The company has announced an interim dividend of 3 cents per share, franked to 40 per cent.

GR Engineering shares were trading 12 per cent higher at 69 cents at 12:30pm WST.