Profit rise for OTOC

Perth-based contractor OTOC says its diversification strategy and growth of its business divisions helped it raise full-year profit by 5 per cent to $5.46 million.

The company reported revenue of $113.1 million, a slight decrease from last year’s result of $113.9 million, but declared no dividend payouts during the period.

“OTOC has $6.8 million in cash and following receipt of a client-approved project receivable, will further strengthen its working capital position with $15 million of cash on the balance sheet,” the company said in a statement.

It said the cash would be used to support its geographical reach in the surveying, town planning and mapping market.

“We are pleased to report another year of strong profit growth despite a challenging market,” chief executive officer Simon Thomas said.

“This result reflects the company’s efforts to diversify our revenue base, resulting in higher quality earnings and greater profit margins.”

In October last year, OTOC won a $16 million construction works contract at the federal government’s migrant processing centre on the Pacific island of Nauru from Brisbane-based construction firm Canstruct.

It added to a $28.7 million contract awarded for work on the island in May last year by Canstruct.

In June, OTOC added $3 million to its order book with a contract from Samsung C&T subsidiary NRW, for mine process plant in-ground services at Roy Hill.

OTOC’s share price fell by 3.3 per cent to 14.5 cents per share at 11:15am.