Programmed full-year profit dips

Programmed managing director Chris Sutherland says the group's annual results show the benefits of its diversification, with its government and property contracts largely offsetting a decline in resource sector work.

The Burswood-based company - full name Programmed Maintenance Services - has announced an after-tax profit of $31.1 million for the year to March 2014, down 3 per cent from its $32.1 million profit in the previous year.

The resources division was mainly responsible for a 5 per cent drop in revenue in the year to $1.43 billion, as a result of reduced onshore mining project activity.

The majority of Programmed’s revenue is derived from Western Australia, with 44 per cent of total revenue generated from government and infrastructure projects, and offshore oil and gas projects.

Earnings before interest and tax was down slightly to $51.8 million, $200,000 less than what was earned the previous year.

While the resources division was primarily responsible for Programmed’s fall in earnings, property and infrastructure showed a rise in EBIT by 21 per cent to $28 million, with workforce earnings remaining relatively unchanged.

Programmed has invested $5 million for a 27.5 equity stake in a start-up online business, OneShift, which focuses on the temporary employment market, matching potential candidates with businesses seeking temporary workers on a fee per candidate basis.

The company benefitted from lower interest costs of $7.4 million as a result of lower debt which fell by 37 per cent $42.2 million.

The board has agreed to pay a fully franked final dividend of 11 cents per share, up 10 per cent from last year, bringing dividends for the full year to 17 cents per share.

Mr Sutherland said he was pleased with the overall performance of the company.

“We are pleased to have maintained EBIT, delivered a strong operational performance, reduced debt and increased dividends.”