Electrical engineering company LogiCamms has booked a 55 per cent increase in its interim net profit after tax to $2.5 million and declared a higher dividend.
Electrical engineering company LogiCamms has booked a 55 per cent increase in its interim net profit after tax to $2.5 million and declared a higher dividend.
The West Perth-based company said the increase was on the previous corresponding period.
Highlights
- Revenue growth of 20% over the pcp was due to increased revenues from infrastructure projects.
- NPAT growth of 55% over the pcp was due to delivering budgeted project margins, a more consistent flow of project opportunities and increased R&D tax benefits.
- The statutory NPAT includes $450,000 in expensed one-off acquisition costs relating to the two acquisitions made during the period. Adjusting for these acquisition costs the operating NPAT would have been $2.96 million (earnings per share of 7.7 cents).
- The Company continued to invest in operational systems, processes and market development in order to lay a foundation to drive revenue growth whilst delivering outstanding customer solutions on a sustainable basis.
- The Directors have declared an interim, fully franked dividend of 2.75 cents per share, representing a 37% increase on the 2 cents per share dividend declared in the pcp. The dividend will be paid on 16th March 2010 to those shareholders on the register at the close of business on 2nd March 2010.
- Following the completion of a capital raising in January 2010 the Company has a net cash position of approximately $10 million and is very well placed to fund organic growth, leverage into larger contracts and to pursue new opportunities as they arise.
Commentary
LogiCamms Managing Director Adam Keats said "We are very pleased with the half year result, which has exceeded our internal budgets, as it demonstrates our teams' ability to deliver great engineering solutions for our customers who continue to reward us with new projects."
"We continue to invest resources in internal development and acquisitions to broaden the services capability within theCompany".
"Importantly, this result further reinforces the stability and diversity of our earnings during a period where some of our key markets are still in a 'recovery phase' following the recent period of global economic instability".
Outlook
The Company is experiencing solid growth in its "Pipeline of Sales Opportunities", which now exceeds $240 million.
The Company recognising its growth opportunities will continue to invest in capability development over the coming period to ensure it can deliver outstanding customer solutions on a maintainable basis. The recent appointment of Mr Paul Harrison to the newly created position of Chief Operating Officer is a tangible demonstration of our commitment to thisoutcome.
The Company expects that the benefit of recent decisions to broaden the range of its engineering services to deliver larger, higher value contracts, will have a positive revenue impact in 2H 2010 and beyond as it pursues contracts across the Oil & Gas, Mining and Infrastructure sectors .
