Profit lift for RCR

WELSHPOOL-BASED engineering company RCR Tomlinson Ltd has announced a 137 per cent increase in its net profit, a result that foreshadows an expected bumper year for Western Australian companies. The company said the growth in earnings came both organically and from complementary acquisitions, including site maintenance business JG Engineering, specialised inspection and maintenance services company VRBT Group, and Australian Crusher Repairs. RCR reported unaudited sales for the 2005-06 financial year of $273 million, a 66 per cent increase from the previous year. The company’s NPAT was $15.4 million, up from $6.5 million for 2004-05. EBITDA was up almost 70 per cent and pre-tax profit was up 100 per cent. RCR has been one of WA’s most acquisitive companies over the past year, with chief executive John Linden describing current trading conditions as being the strongest of any time in the company’s 15-year history. The company has had a long running strategy to acquire new businesses that are both complementary and provide diversification.