Welshpool-based engineering company RCR Tomlinson Ltd has announced a 137 per cent increase in its net profit, a result which foreshadows what is expected to be a bumper year for WA companies.
The company said the growth in earnings came both organically and from complementary acquisitions, including site maintenence business JG Engineering, specialised inspection and maintenance services company VRBT Group and Australian crusher repairs.
RCR reported unaudited sales for the 2005-06 financial year of $273 million, a 66 per cent increase from the previous year. The company's NPAT was $15.4 million, up from $6.5 million for 2004-05.
EBITDA was up almost 70 per cent and pe-tax profit was up 100 per cent.
RCR has been one of WA's most acquisitive companies over the past year, whose chief executive John Linden has described current trading conditions as being the strongest of any time in the company's 15-year history.
The company has had a long running strategy to acquire new businesses which are both complementary and provide diversification.
Its latest WA purchase, Geraldton-based firm JG Engineering, had been owned by Greg Anderson since 1998.
The $4.8 million purchase price comprised $1.8 million in cash and $3 million in RCR shares. In line with normal practice, the shares will be escrowed, meaning Mr Anderson cannot sell them for six months
