Monadelphous eyes revenue growth

Monadelphous has reported a rise in both its first-half revenue and profit but has expressed concern about skilled labour shortages.

The mining services business grew its revenue by 19 per cent in the six months to December to record $947.8 million. Its net profit was up 11 per cent to $31.6 million.

The board has declared a fully franked, interim dividend of 24 cents per share.

Monadelphous said it continued to win work despite challenges brought on by COVID-19, having secured $360 million in work during the first half.

However, the business expects the skilled labour market to tighten as a result of heightened demand and unpredictable interstate border restrictions.

“Capacity constraints from the further tightening of an already stretched labour market, coupled with unpredictable interstate border restrictions, will be a key challenge for the business,” Monadelphous said.

Despite uncertainty caused by COVID-19, Monadelphous expects its full-year sales revenue to increase by 10 per cent on the prior year, citing a “steady flow of opportunities” from the resources sector in the coming years, in particular from WA’s iron ore industry.

Developments in other sectors including lithium, gold, copper and nickel were also expected to provide ongoing work for the business, Monadelphous said.

Its shares were up 4 per cent at 3:03pm AEDT to trade at $12.32.