Programmed Maintenance Services has rewarded shareholders with a higher dividend payout after posting a small lift in net profit after tax.
The Burswood-based company has reported a $32.1 million profit for the year to March 2013, up 3 per cent on the prior result.
The profit gain was helped by a tax credit and a fall in its interest expense, and was achieved despite a $2.6 million restructuring expense.
Revenue rose by 9 per cent to $1.5 billion while underlying profit (EBIT before restructuring costs) dipped a little to $54.6 million.
Managing director Chris Sutherland said the company’s ability to effectively maintain profits, reduce debt and lift the dividend was a good outcome for shareholders in a difficult market.
The result reflected Programmed’s diversified business structure, with the resources division achieving higher earnings whereas the property & infrastructure division and the Integrated Workforce business suffered from falling margins.
"Activity in some of our sectors remains subdued, while we have good visibility of future work from both the oil and gas and public infrastructure sectors," he said.
Mr Sutherland told Business News the need for governments to maintain their existing assets would sustain activity in that sector, while in resources the group was focused on operations and maintenance, which is set to increase despite an expected fall in new construction.
In the resources division, earnings rose by 10 per cent as margins increased for onshore work.
The offshore oil and gas sector contributed most of the resources division's revenue, with the group servicing 50 vessels.
Programmed is undertaking work on Chevron's Gorgon liquefied natural gas project, has won a contract on Chevron’s Wheatstone project, and is bidding for work on Japanese group Inpex’s Ichthys LNG project.
The property and infrastructure maintenance division posted a 15 per cent revenue increase but earnings fell by 14 per cent.
The Integrated Workforce division posted a 7 per cent revenue increase, however, earnings dropped by 5 per cent.
"The market remains weak, with small and medium size enterprises cautious about hiring people," Mr Sutherland said.
The company has declared a 10 cents per share final dividend, lifting the full-year payout to 15 cents (from 13 cents).
Mr Sutherland said that in light of the company’s reduced debt, the board decided to “err on the generous side” when declaring its final dividend.
Shares in Programmed rose by 11 cents, or 5.1 per cent, to $2.26 at 1035 AEST.