Redcliffe-based Global Construction Services is hoping for an improvement in the construction sector later this financial year after it today posted a 9.3 per cent fall in its interim profit.
Redcliffe-based Global Construction Services is hoping for an improvement in the construction sector later this financial year after it today posted a 9.3 per cent fall in its interim profit.
Redcliffe-based Global Construction Services is hoping for an improvement in the construction sector later this financial year after it today posted a 9.3 per cent fall in its interim profit.
The company booked a $4.9 million net profit after tax for the six months ending December 2009.
The result was on the back of revenue of $38.2 million, down from $44.2 million recorded in the previous corresponding period.
Earnings before interest, tax, depreciation and amortisation was down from $11.9 million to $10.4 million, with operating margins steady at 27.3 per cent.
Earnings per share was 5.8 cents and directors have declared a fully franked, interim dividend of 2.25c.
Managing director Enzo Gullotti said the result was achieved despite challenging conditions in some segments of the construction services market.
"We are pleased with this result which is in line with market expectations," said Mr Gullotti.
"It demonstrates our ability to maintain market share and to maintain our group's operating margin.
"While conditions in some of our markets remain soft, an improvement is anticipated in the fourth quarter of this financial year.
"It is a testament to our diversified business model that we have been able to withstand these difficult market conditions and deliver a consistent result in the half year.
"We are very pleased with the performance of the GCS Commercial Division which has secured significant construction contract wins; the latest being $79m of contracts to provide formwork and concrete installation for the Western Australian Department of Health's Fiona Stanley Hospital Project in Perth."
He added the company's Resource and Industrial Services Division was now well established in the state's north but has experienced a slow down in activity resulting from a significant number of resource projects being put on hold.
"We are confident with the outlook for the Resource & Industrial Services Division given the $100 billion of committed projects in the region.
Shares in the company climbed 5.5c to 98.5c at 11:43 AEDT.