RCR delivers promising result

Engineering services company RCR Tomlinson has increased profit by 3.9 per cent to $19 million for the six months to December, on the back of sales in the infrastructure and energy markets.

The company reported a 16.7 decline in revenue, however, but said it was consistent with the previous corresponding period at $584.5 million primarily due to steady income from infrastructure, energy, and mining equipment sales.

It said more than 70 per cent of its revenue and earnings were derived from the infrastructure and energy markets.

RCR lowered debt to $18.1 million, down from $57.2 million, as a result of the sale and leaseback of four properties, which realised $37.3 million.

The company also declared a 17 per cent higher interim dividend of 3.5 cents per share, fully franked.

Managing director Paul Dalgleish said it was pleasing to improve profitability as the company refines “the operating performance of the business and reduce costs”.

“A significant reduction in net debt, down from $90 million post the acquisition of our infrastructure business to $18.1 million, provides us with low gearing and therefore capacity to continue to pursue acquisitional growth opportunities,” he said.

RCR shares closed 2.38 per cent higher at $2.15 per share.