SCEE out of the red with $5m profit

Southern Cross Electrical Engineering has made a net profit for the 2016 financial year, turning itself around from last year's loss.

Perth-based SCEE reported a net profit of $5.1 million for the 2016 financial year, rebounding from a $9.8 million loss in FY15 following a number of write-downs and restructuring costs.

Revenue was down 13.7 per cent to $207.6 million for the year.

The company declared a final dividend of 1.35 cents per share fully franked, for a full-year dividend of 2.7 cents per share.

SCEE chief executive Graeme Dunn said the net profit result was achieved despite competitive market conditions, with the last expansion projects for the time being in the Australian iron ore sector completed during the year.

“The resources sector continues to move from the capex phase to a sustaining capital and maintenance phase and the company has taken actions that will help us better meet clients’ changing needs and allow us to maintain a sustainable resources business,” Mr Dunn said.

“2016 has also seen us perform some other important strategic actions that will stand us in good stead to grow in future years.”

Mr Dunn said the company was now active in a diverse range of sectors, both organically and through the recent acquisition of Datatel.

“Datatel gives SCEE immediate market entry into the telecommunications sector and, by combining SCEE’s resources and their operational excellence, a platform which can be leveraged for national expansion outside of WA,” he said.

“We are actively evaluating other acquisition opportunities that would further broaden our geographic and sector footprint and enter 2017 with a strong balance sheet capable of supporting these growth initiatives.

“We have continued to manage our cost base through significant efficiency initiatives to ensure that it remains appropriately sized for our activity levels.”

SCEE enters FY17 with an order book of $24 million.

Shares in SCEE were 6.7 per cent lower to 55.5 cents each at 1:20pm.