21/08/2015 - 15:28

GR beats engineering peers

21/08/2015 - 15:28

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GR Engineering has reported strong growth in revenue and earnings, eclipsing a clutch of engineering and construction contractors to report their annual results today.

GR beats engineering peers
GR Engineering managing director Geoff Jones.

GR Engineering Services has reported strong growth in revenue and earnings, eclipsing a clutch of engineering and construction contractors to report their annual results today.

Belmont-based GR lifted sales revenue 90 per cent to a record $216 million for the year to June 2015, while EBITDA was up 18 per cent to $20.3 million.

A sharp jump in its tax expense meant net profit, down 9 per cent to $12.9 million, was about the only performance metric to go backwards.

The company’s performance was underpinned by big contracts with a handful of mining sector clients, including Wolf Minerals, MZI and Sirius Resources.

GR is seeking to expand its oil and gas sector business unit, which delivered $31 million in revenue last year.

With a strong cash balance, GR lifted its final dividend to 5.0 cents per share, taking the full-year payout to 9.5 cents, up from 7.0 cents.

Managing director Geoff Jones said the company was pleased to continue its track record of delivering strong shareholder returns.

“The company’s strong order book into FY16 and anticipated cash flow leaves it well placed to continue delivering returns to its shareholders,” he said.

Singapore-listed Civmec reported solid results, with revenue up 15 per cent to $S499 million but net profit down 13 per cent to $S30.3 million.

With its core operations at a large fabrication workshop at Henderson, Civmec is looking to diversify beyond resources, energy and infrastructure to the defence sector.

Civmec maintained its dividend at 0.7 Singapore cents per share.

Calibre Group and Austin Engineering both reported big losses, with their bottom line results hit by large impairments as the two companies responded to the downturn in the resources sector.

Calibre’s revenue fell 20 per cent to $566 million while underlying net profit was down 37 per cent to $18.5 million.

That was before impairment charges of $186 million, which took the bottom-line loss to $159 million.

The company said it delivered a solid underlying result amid tough trading conditions in the resources and infrastructure segments, offset to a degree by a strong performance in its consulting division, which focuses on land development.

Brisbane-based Austin Engineering said its revenue ($210 million) and normalised EBITDA ($15 million) were in line with last year.

However, impairment and restructuring costs pushed it to a net loss of $49.3 million, from a profit in the previous year of $0.9 million.

Austin said revenue from its Australian business units, including in Western Australia, fell by 15 per cent over the year whereas its Americas business unit, focused on Chile and Colombia, was up 10 per cent.

Chief executive Michael Buckland said its Perth operations were expected to produce a result at least on par with previous results “with encouraging levels of orders recently secured”.

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