Georgiou turnover hits $574 million

Construction and engineering contractor Georgiou Group has lifted its annual profit and turnover and tipped a positive outlook, helped by recent contract wins at Perth Airport, in the Pilbara and on the east coast.

The family-owned contractor’s turnover jumped 37 per cent last year to $574 million, close to the annual record of $602 million achieved in 2014.

The higher turnover helped the group increase pre-tax profit to $5 million for the year to June 2018.

Writing in the company’s annual review, chairman John Georgiou said the majority of the group’s businesses reported increased profits.

The annual review disclosed that work in hand slumped to $500 million as at June 30, down from $543 million one year earlier.

However a spokesperson said a number of contracts have been awarded since then, lifting work in hand to about $700 million.

Its latest win, announced this week, was a $25 million contract to work on Sydney Metro’s Northwest project.

The scope of work includes design and construction of roads and buildings, pedestrian and cycling bridges, service relocation, demolition and landscaping.

Other recent wins include the Perth Airport Skybridge, which will link to the new train station, the $18 million Roy Hill traffic bridge in the Pilbara, and the Marina East apartment building in WA.

On the east coast, recent wins include the $120 million Northern Road upgrade in NSW in joint venture with Ertech and the Bruce Highway upgrade in Queensland.

Planning ahead, Georgiou is a member of the METROconnex consortium that is bidding for Metronet projects including the Yanchep rail extension and the Morley to Ellenbrook rail line.

The consortium’s other members are Spanish group ACCIONA, Clough, Aurecon and WSP.

Nationally the group worked on 46 projects last year, with staff numbers increasing to 636.

“A key element of our business strategy was to continue our growth on Australia’s east coast, the success of which has surpassed our wildest imaginations,” chairman John Georgiou stated.

“Through consistent delivery on time and on budget, our reputation in the transport sector is growing and our relationships with our clients remain strong.” 

Mr Georgiou said the Australian construction market was forecasting a continued solid uplift through 2018 and 2019, led by mining and government infrastructure works.

“Engineering construction wil remain a key driver of growth, both for Australia and Georgiou, while commercial building activity is poised to experience stronger conditions over the next two years as more projects receive the go ahead,” he said.

Notable WA projects completed by Georgiou last year included construction of the $32 million Prime House office building in Joondalup, the $69 million DFO shopping centre at Perth Airport, and the $61 million Liv Apartments in Fremantle.

It has also won contracts with Tianqui Lithium and built the $14 million Ellenbrook water tank for the Water Corporation.

In addition Georgiou has continued to work on WA land development projects for Stockland and Lendlease, and more recently has won grain terminal expansions for CBH Group.