17/08/2009 - 12:09

WA engineering firm posts record profit

17/08/2009 - 12:09

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Southern Cross Electrical Engineering have posted a record net profit after tax of $15.5 million, an increase of more than 36 per cent, thanks to record revenues of more than $100 million, up by more than 19 per cent on the previous year.

Southern Cross Electrical Engineering have posted a record net profit after tax of $15.5 million, an increase of more than 36 per cent, thanks to record revenues of more than $100 million, up by more than 19 per cent on the previous year.

 

Full announcement below:

 

Southern Cross Electrical Engineering Exceeds Prospectus Earnings

Electrical and instrumentation construction specialist, Southern Cross Electrical Engineering Limited (ASX:SXE) today announced a 36.6% increase in net profit after tax ("NPAT") to $15.5m for the year ended 30 June 2009. This result was achieved from record revenues of $100.3m and represents a $4.2m increase on the prior year NPAT result.

The financial highlights for the Company are:


Results FY09 FY08 Variance
Revenue 100.3 84.2 16.1
Earnings before interest, tax, depreciation and amortisation ($million) 26.9 16.2 10.7
Net profit after tax ($million) 15.5 11.3 4.2
Earnings per share 12.9 cps 10.1 cps 2.8 cps
Dividend per share 6.5 cps 6.0 cps 0.5 cps
Return on equity 41.3% 49.1% (7.8%)


Operational highlights include:
- Won monthly safety award at Cape Lambert upgrade 6 out of 10 times;
- 0 lost time injuries;
- Completing our 175th gold mine project;
- The development and communication of SXE's strategic plan; and
- The acquisition of Hindle Electrics and K.J. Johnson & Co.

SXE undertook a number of key projects in both Australia and internationally throughout 2009 that contributed to the strong operational and financial performance of the group, namely:
- Cape Lambert CLU80 upgrade;

- Hope Downs 1 Stage 2 expansion project;

- Boddington gold mine expansion project;

- Buzwagi gold plant construction in Tanzania; and

- Cerro Corona gold project in Peru.

SXE chairman Frank Tomasi said he was very pleased that the Company had achieved record revenue and record profit without compromising the Company's core values of safety and service delivery.

"I attribute this achievement to a dedicated team who are focussed on delivering high quality services to our customers" Mr Tomasi said.

These results have enabled the Company to declare a fully franked final dividend of 4.5 cents per share. This takes the full year fully franked dividend to 6.5 cents per share which is an increase of 8.3% on the prior year.

SXE generated operating cash flow of $15.7m during FY09 with the balance sheet in a strong position with a cash balance of $31.3m at 30 June 2009. This has placed the Company in a position to complete the acquisition of two strategic businesses without the need to source new capital.

Managing Director, Mr Stephen Pearce said:

"The operating and financial results for 2009 reflect the significant effort and focus of the SXE team and the value we place on delivering outcomes to our clients. Importantly, we also worked on a number of key initiatives that help build SXE's capability and capacity to meet the challenges and opportunities for 2010 and beyond.

Current projects being undertaken by SXE include work at Boddington, Tiwest, Cape Lambert, Cape Preston and other projects via Hindle Electrics and K.J. Johnson & Co.

The outlook for SXE is very positive given the level of oil and gas infrastructure investment underway in Australia. This is complimented by some significant resource projects both in Australia and internationally. The combination of this strong organic pipeline and the two recent acquisitions creates an exciting future for SXE."

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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