26/08/2015 - 15:10

SRG aiming for acquisition boost

26/08/2015 - 15:10

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Diversified contractor SRG has completed its $2.3 million acquisition of Perth-based commercial maintenance and repairs firm CCM Group Australia, which it says will add to its capability in Western Australia.

SRG aiming for acquisition boost
SRG managing director David Macgeorge (left) with CCM Group managing director Keith Wood-Gush.

Diversified contractor SRG has completed its $2.3 million acquisition of Perth-based commercial maintenance and repairs firm CCM Group Australia, which it says will add to its capability in Western Australia.

In the five years since CCM Group was established in Wangara, it has grown to have 40 staff, who will in future be based at SRG’s Subiaco offices.

Managing director Keith Wood-Gush will continue to run the CCM business.

SRG, which changed its name last year from Structural Systems and moved its head office to Perth, today reported an improvement in earnings from its weak 2014 result.

Revenue fell to $172 million for the year to June 2015, but operating profit grew strongly to $6.0 million and net profit after-tax improved by 27 per cent to $1.6 million.

Chairman Peter McMorrow described this as a strong outcome in challenging market conditions, and one the company was well positioned to build upon.

The company has no net debt, and lifted work in hand to $154 million.

Its mining segment (formerly Rock Australia Mining & Civil) has work in hand of $98.7 million, after renewing its agreement in South Australia with BGC Contracting and securing a new contract at Evolution Mining’s Edna May gold mine in Western Australia.

SRG’s construction segment, which contributed $104 million to group revenue in FY15, has work in hand of $55.1 million.

Is civil business, which was part of a joint venture that recently erected the pedestrian bridge at Elizabeth Quay, had a “very challenging year”, according to managing director David Macgeorge.

Despite this, SRG sees the civil business as one of its key growth areas for FY16.

Mr Macgeorge said the services business suffered the most last year, but it was also an area where SRG expected medium-term growth.

This will be helped by the integration of CCM Group into the services business.

SRG said CCM would complement its existing remedial services capability on the east coast.

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