Macmahon lifts 2020 guidance

Shares in mining contractor Macmahon Holdings have touched a new high for the year after the company reported a strong interim profit and upwardly revised its revenue and earnings guidance for the full financial year.

The Perth Airport-based company said it had revised its guidance because of its strong first-half results and work already in hand for the second half.

Macmahon today reported a 22 per cent increase in net profit to $28.7 million for the six months to December 2019, on the back of a 27 per cent surge in revenue to $686 million.

Contributors included its established projects across Australia and Indonesia, its recently acquired underground contractor GBF Group and the ramp-up at the Boston Shaker project.

The board declared an interim dividend of 0.25 cents per share.

For the year to June 2020, Macmahon has lifted its revenue guidance to between $1.3 billion and $1.4 billion, up from $1.2-1.3 billion.

Its earnings before interest and tax is now expected to reach between $85 million and 95 million, up from $80 million-90 million.

Managing director Michael Finnegan said the company would continue to invest in people, mining technology and its digital transformation to achieve its goal of safe and profitable growth.

“With a workforce of more than 7,000 people (including contractors), a solid balance sheet, significant order book of $4.5 billion and tender pipeline of over $7 billion, we are well positioned for further growth,” he said.

Macmahon’s share price closed up one cent today at 30 cents.