22/08/2008 - 12:06

Lycopodium FY profit up 40%

22/08/2008 - 12:06

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East Perth-based engineering company Lycopodium Ltd believes the buoyant minerals sector outlook will offset challenging conditions in the biodiesel and manufacturing sectors, as it today announced a 40 per cent increase in full-year net profit.

Lycopodium FY profit up 40%

East Perth-based engineering company Lycopodium Ltd believes the buoyant minerals sector outlook will offset challenging conditions in the biodiesel and manufacturing sectors, as it today announced a 40 per cent increase in full-year net profit.

The company today reported an after tax profit of $12.4 million on the back of revenue growth of 15 per cent from the previous year to $121 million.

Earnings per share was up 40 per cent to 33 cents.

Over the period, Lycopodium said demand was particularly strong in the minerals sector, particularly in Queensland.

Segment by segment, the company's engineering, procurement, construction and management arm reported the highest profit of $17.2 million, up from $14.8 million.

Looking forward the company kept a cautious view for its overall outlook, saying the full effects precipitated by the sub prime crisis were yet to be seen.

"At this time however, minerals commodity prices remain high in relation to historical trends and the outlook remains generally positive within the sector which continues to provide an environment of high demand for Lycopodium's services," the company said.

"The level of activity in the biodiesel, manufacturing and general industrial environments within Australia is not as buoyant as the resources sector however, and this market segment continues to remain challenging at this time."

At the end of the period, the directors declared a final, fully franked dividend of 20 cents, taking the total dividend for the year to 25c, up 43 per cent from the previous year.

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