Macmahon returns to the black with $30.4m profit

Perth civil engineering firm Macmahon Holdings is back in the black with $30.4 million full-year profit and $1 billion in revenue.

The company reduced its gearing ratio to 12.9 per cent after repaying $50 million in debt.

Macmahon chief executive officer Ross Carroll said the company had delivered on its commitment to shareholders to return the business to profitability despite difficult market conditions.

“Our four pillars of success, being safety, business improvement, business development and people, have provided us with clear areas of focus and we are continuing to invest significant resources in these areas to ensure we achieve greater performance moving forward,” Mr Carroll said.

"In the last 12 months we've completed the transition out of construction with the last of our projects now completed or sold, we've stabilised our earnings and returned the company to profitibility, reporting a solid result this year.

"We've been careful with our capital expenditure and we've reduced our debt level substantially."

Macmahon’s return to profit was aided by a four-year contract to provide raise drilling services at BHP Billiton’s Olympic Dam mine site.

In June Business News reported that Macmahon had mobilised the world’s most powerful raise drilling machine to Olympic Dam.

Macmahon said its international operations were performing in line with expectations and it will continue to focus on winning overseas contracts.

Mr Carroll said Macmahon maintained a healthy cash position and was entering the new financial year in a solid position.

“The company generated operating cash flows from mining operations of $125.2 million, which represents an increase of 6 per cent,” he said.

Mr Carroll said the company’s order book stood at $2.6 billion, and was tendering for about $2.3 billion of new work in the next 12 to 18 months.

"This is underpinned by long-term contracts with our clients," he said.

"We're bidding for a lot of work, although competition remains fierce."

Macmahon’s share price closed 27.27 per cent higher at 14 cents per share.