Civmec’s H2 net profit jumps 43% on higher revenue, better margins

CONSTRUCTION and engineering group Civmec reported a net profit of A$28.17 million (S$27.2 million) for H2 FY22, up nearly 43 per cent year on year on the back of increased revenues and improved gross margins.

Revenue was 14 per cent higher at A$419.94 million due to increased activity levels and the timing of revenue recognition on projects, while earnings per share worked out to 5.61 Australian cents, climbing from 3.94 cents previously.

Gross profit for H2 2022 was 20 per cent higher at A$48.63 million in line with the higher revenue and improved gross profit margins which went from 11 per cent to 11.6 per cent. The bottom line was also boosted by an increase in other income as well as a decrease in finance costs.

For the 12 months ended Jun 30, 2022, net profit jumped 46 per cent year on year to A$50.76 million as a result of increased revenue and lower finance costs. Revenue rose 20 per cent to A$809.3 million due to the timing of projects.

Civmec is recommending a final dividend of 2 Australian cents per share, compared to 1 cent per share in the corresponding period a year ago. Subject to shareholder approval, the dividend will be payable Dec 19.

Chief executive Patrick Tallon said: “Tendering activity remains strong across all sectors that we operate in, and we are focused on securing projects that will allow us to grow our workforce at a sustainable rate.”

Tallon added that Civmec remains positive about the pipeline and opportunities to replenish its order book, and is focusing on growing the proportion of revenue stemming from long-term contracts. Civmec’s order book stands at over A$1.03 billion.

The counter closed at 64.5 Singapore cents on Monday (Aug 29), unchanged.