A buoyant economy and strategic acquisitions have helped more than double earnings at Welshpool-based diversified engineering services provider RCR Tomlinson Ltd, with net profit of $15.8 million recorded for the 2005-06 financial year.
The net profit is up from $6.9 million earned last year and almost $400,000 above the amount quoted in the company's unaudited results, a discrepancy RCR attributes to a reduction in its estimated income tax expense.
Sales for the year increased by 67 per cent to $272.2 million and earnings per share increased by 83 per cent
The result represents a 100 per cent pre-tax profit increase for the year to 30 June 2006, propelled by a booming operating environment and strategic bolt-on acquisitions.
During the period the Company successfully completed the purchase and integration of the Easteel Group of Companies, Advanced Cutting Service, Newman Engineering Group, Austheat Victoria and CGC Equipment.
These bolt-on acquisitions are expected to continue to provide significant financial growth opportunities to RCR in future reporting periods.
Acting chief executive John Noordhoek said the outlook for the engineering services sector remains extremely strong, with RCR targeting further growth through acquisitions, as well as organic sales growth with consistent margins in 2006/07.
"RCR has benefited from a buoyant industry and strategic acquisitions. We expect the strategic direction of the Board and the prudent practices implemented by senior management will continue to provide financial growth opportunities to the company moving forward," Mr Noordhoek said.
Since June 30, RCR has purchased the businesses of JG Engineering, VRBT Group and Australian Crusher Repairs, and has undertaken a capital raising of a placement of 11 million shares to raise $24.2 million.
