Mining contractor NRW Holdings’ profits have taken a hit from the downturn in resources spending, but the company maintains its outlook over the short to medium-term remains positive.
NRW today announced a net proft of $74.1 million for the 2013 financial year, down 23.7 per cent on the previous 12 months.
Revenue came in at a record $1.37 billion, an increase of 1 per cent on the prior year.
The company will pay a final dividend of 5 cents per share, fully franked.
NRW said its forward order book stood at more than $1 billion as of June 30, with the company employing a workforce of 2,283 people, a 50 per cent reduction on FY2012.
The company’s peak workforce was 4,821 in August last year.
NRW chief executive Jules Pemberton said the company’s outlook remained promising with a steady pipeline of tenders and a clear strategy to diversify its client base.
“The group’s balance sheet, funding facilities and solid cash position provide a strong foundation for future organic growth and potential acquisitions,” Mr Pemberton said in a statement.
“The group will continue to assess acquisition opportunities both domestically and internationally to add value to NRW’s service delivery model.”
Mr Pemberton said NRW expected revenue to come in between $1 billion and $1.2 billion for the 2014 financial year, with 60 per cent of that already secured.
“We will also continue to focus on cost management programs, efficiencies and continuous improvement processes,” he said.
“These practices will contribute to NRW’s overall cost effectiveness in project delivery and assist in maintaining our market competitiveness.”
NRW shares were up 4.8 per cent on the ASX at 1:55PM, WST, trading at $1.20.
