Engineering group RCR Tomlinson says its $140 million purchase of infrastructure business Norfolk Group is paying dividends, announcing a 14 per cent increase in half-year net profit.
RCR posted a net profit after tax of $18.3 million, a figure which includes $3.7 million in non-recurring transaction costs related to the Norfolk acquisition.
The company's revenue soared more than 80 per cent to $701.7 million in the six months to December 2013, with its infrastructure division delivering revenue of $358.5 million compared to just $42.8 million in the first half of the 2013 financial year.
Its earnings per share growth was more moderate however, up 12 per cent to 13.6 cents per share.
RCR said the Norfolk acquisition, which was completed in July, had resulted in increased and broader infrastructure activity, with contracts secured across a range of sectors.
Revenue in RCR's resources division was slightly higher at $276.7 million while revenue from its energy business was marginally lower at $90.8 million.
"We are pleased with the performance of the infrastructure business for the five months since acquisition, delivering a more than 3.5 per cent margin and with significant integration work still in progress that will fully realise the acquisition potential," RCR managing director Paul Dalgleish said.
"Our existing resources and energy businesses have continued to deliver earnings growth in opportunistic markets, due to the differentiators of our technology offerings and the highly specialised nature of our off-site repair work."
The company also announced a fully-franked interim dividend of 3 cents per share, up 20 per cent on the previous corresponding period.
RCR shares were trading more than 5 per cent higher at $3.07 at 10:57am WST.
