Mining and construction contractor Macmahon Holdings has lodged a record net profit of $56.1 million for the year to June 30, on the back of a 49 per cent jump in revenue to $1.9 billion.
Macmahon chief executive Nick Bowen said the result came on a particularly strong performance from the company’s mining division, with increased profits attained through better plant utilisation and production performance.
Mr Bowen said that while the construction division returned to profit, the rapid growth of the business and challenges securing skilled workers and equipment had impacted margins for the year.
The company’s order book stood at $3.1 billion at June 30, with project wins during the year totalling a record $3 billion.
“The project diversity and geographical spread of Macmahon’s revenue base provides a robust business model which is expected to deliver sustainable shareholder value over the long-term,” Mr Bowen said in a statement.
Macmahon paid a final dividend of 2.5 cents per share, fully franked.
Mr Bowen said the company’s focus for the year ahead would be to continue to drive margin improvements through cost efficiencies, improved project execution and further pursuit of high-margin overseas projects.
“Macmahon’s diversified business strategy is now well advanced and the geographical footprint of our operations is continuing to expand across project types, markets and industry sectors,” he said.
“This business model positions the company to tackle changing market conditions, while maintaining its commitment to delivering sustainable returns to shareholders.”
At 10:20AM, WST, Macmahon stocks had gained 6.7 per cent, trading at 66.7 cents.