OTOC to pay first dividend

After a year of acquisitions and big contract wins, diversified business OTOC has returned to the black and will pay its first-ever dividend.

Perth-based Otoc revealed a net profit of $19.7 million for the 2016 financial year, with a 75 per cent increase in revenue to $120.8 million and a 246 per cent surge in underlying earnings before interest, tax, depreciation and amortisation to $16.2 million.

The company also announced it would pay a dividend of 0.5 cents per share, fully franked, for the first time.

“The 2016 financial year was one of strong financial performance and growth in our business,” Otoc chief executive Simon Thomas said.

“Our results are substantially improved from the prior year and we have increased the strength of our balance sheet which will put us in good stead for future growth.

“The year ahead is exciting as we look to extend our national footprint and market share in the survey industry, and return benefits from organic growth, acquisition and integration synergies.

“Our infrastructure division also has a robust outlook on workload as we move forward into FY17.”

Otoc made a number of acquisitions during the year, including the purchase of Linker Surveying and Lawrence Group, which added to the company’s pool of surveying subsidiaries including Whelans, Bosco Jonson, Geo-Metric Surveying and THG.

The group’s infrastructure division was boosted by two major projects: installation of a solar energy plant at Sandfire Resources’ DeGrussa copper mine for client juwi Renewable Energy; and the installation of buildings at Nauru for client Canstruct.

Otoc shares were 6 per cent higher to 35 cents each at 1pm.