RCR Tomlinson says it's confident its newly acquired infrastructure business will provide significant growth in the year ahead as the company looks to diversify its revenue streams.
RCR Tomlinson says it's confident its newly acquired infrastructure business will provide significant growth in the year ahead as the company looks to diversify its revenue streams.
RCR acquired engineering contractor Norfolk Group in July for $140 million in what RCR described as a key milestone in the company's goal to diversify into new technology-based infrastructure markets.
RCR chairman Roderick Brown told shareholders at the company's annual general meeting in Perth today the Norfolk acquisition meant more than two thirds of the company's annual revenues would be derived from infrastructure markets.
These markets include rail, power transmission and distribution, telecommunications and the commercial property sector.
"Looking forward, the strength in our existing business and the addition of our new infrastructure business will provide strategic revenue diversification and significant growth in the coming year and beyond," Mr Brown said.
"The key to this growth is the successful integration of the acquisition of the Norfolk businesses into our new infrastructure business and the recovery of the Norfolk businesses' profitability.
"Whilst we have only had ownership of our new infrastructure business for a short period, we are confident that our track record as an organisation and the desire of our executive to make it happen will enable us to achieve these important goals."
RCR's resources division accounted for 50 per cent of the company's revenue contributions in the 2013 financial year, with sales increasing to $449 million.
Its mining division accounted for a further 18 per cent of revenue, despite what the company described as a relatively flat FY13 performance for the division.
RCR was last month awarded more than $125 million in new contracts across its resources division.
The company was awarded a design and construction contract to deliver its first in-pit iron ore sizing plant for Rio Tinto's MESA J mining operations, 200 kilometres south-west of Karratha.
The plant will have a minimum production capacity of 12 million tonnes per annum and is expected to be completed by March 2015.
RCR was also awarded structural, mechanical, piping, electrical and instrumentation works valued at $70 million at Glencore's Ernest Henry mine project in north-west Queensland, and at Newcrest Mining's Cadia Valley operations in New South Wales.
Mr Brown said RCR would also look to grow its energy business further into south east Asia, with plans to bid for projects worth up to $150 million.
RCR shares closed the day's trade 2 per cent higher at $3.54.
