Valmec shines, but Lycopodium falters

Two local engineering services firms have reported contrasting full-year results today, with Valmec announcing record underlying earnings while profit at Lycopodium fell 9.8 per cent.

Valmec’s underlying earnings surged 65 per cent to $8.06 million, while revenue was up 6.3 per cent to $110 million.

Its net profit was $3.5 million, compared with $1.16 million in the prior corresponding period.

The contractor is also anticipating a strong fiscal 2020, with its order book at around $80 million.

The company said it also had a pipeline of construction and service opportunities worth over $595 million.

Meanwhile, Lycopodium released its results for the 2019 financial year, which detailed a fall in profit to $16.5 million.

It recorded revenue of $154 million, compared with $194.6 million in the prior corresponding period.

It paid a final dividend of 15 cents, which was 3 cents less than its previous final dividend.

The company forecast earnings of $220 million for the 2020 financial year, with its bottom line to be a similar level to FY19.

Shares in Valmec closed up 11.1 per cent to trade at 30 cents.

Shares in Lycopodium closed down 3.4 per cent to trade at $5.70 each.