Welshpool-based engineering company RCR Tomlinson Ltd has posted a net profit of $9.13 million for the half year ending December 2007, up 10.7 per cent on the corresponding period in 2006.
The profit result was slightly down, however, on the $9.4 million profit achieved in the six months to June 2007.
RCR said the latest profit result was boosted by sales of $223.5 million and the acquisition of the Positron Group which was finalised in October, but was impacted by the timing of considerable new project work started across RCR, and lower utilisation rates and contribution from RCR Construction and Maintenance.
Earnings before interest and tax were up 26.3 per cent to $13.2 million, while earnings per share gained 1 cent to 7.6 cents over the six months to December 2007, compared to the corresponding period in 2006.
Construction and Maintenance revenue decreased by 4 per cent to $71.3 million and segment result was down 62 per cent to $3.4 million.
RCR said the delay in winning significant project work during the first half impacted significantly on the margin combined with issues associated with two projects in its Gladstone facility, which have since been addressed.
Looking ahead, the company said the business outlook was stronger for the second half with the current order book at its highest level for this financial year and tender levels remaining high.
Shares in RCR closed 21 cents, or 13.9 per cent lower today, to $1.82 each.
