Primero books $5.2m profit

­­A boost in resources contracts has driven engineering firm Primero Group to a $5.2 million profit for the 2018 financial year, with the company forecasting a further increase in revenue next year.

The uptick in profit from last year’s result of $1.5 million was reflected in a 63 per cent increase in revenue to $85.2 million.

Perth-based Primero, which listed on the ASX last month, said its minerals division accounted for $71.2 million revenue in FY18, compared to $10.8 million  the previous year.

The company attributed the increase to a rise in capital expenditure on mining projects, in particular in the battery minerals space.

Revenue from the energy department fell slightly to $5.1 million, while non-process infrastructure work fell mainly due to the completion of serveral major contracts with Rio Tinto.

Earnings before interest, taxes, dividends and amortisation rose 259 per cent to $8.9 million.

“Delivering these first set of financial results following the successful completion of Primero’s initial public offer in July 2018 is an important milestone for our business and its shareholders,” managing director Cameron Henry said.

“Revenue, EBITDA and net profit after tax have all come in ahead of the IPO prospectus forecast and we have continued our +60 per cent year on year revenue growth since 2016.

“Standout annual revenue growth of more than 500 per cent for our minerals division is directly linked to Primero’s expertise in the battery minerals sector and the increased investment in projects in this commodity group.”

Mr Henry also said the company was expecting revenue growth to continue in 2019, with $95 million of contracted revenue already.

Shares in Primero finished up 8.75 per cent at 44 cents each today.