Net profit for the full year ending June30 came to $5.5 million thanks to improved margins on new contracts, improved fleet utilisation and leveraging overheads on increased revenue.
Mastermyne managing director Tony Caruso said the strong full year result for FY18 was a continuation of the momentum the company generated in the second half of FY17.
"Our disciplined approach to managing costs combined with recent contract wins, scope growth on existing contracts and strong demand for equipment has flowed into a much stronger financial result during FY18," he said.
"With the significant upward swing in the commodity cycle, the company has successfully leveraged its strong financial position, its mining fleet and its skilled personnel to secure a number of new contracts with customers on projects that are critical to sustain their ongoing operations."
During the year the company secured projects with Peabody Coal Australia at its North Goonyella mine and Wambo mine and also with Whitehaven's Narrabri mine.
It renewed contracts with Anglo's Moranbah North mine, BHP Billiton Mitsubishi Alliance's Broadmeadow Mine and with Dalrymple Bay Coal Terminal along with a number of smaller projects sites.
With the addition of the recent major projects, the company has shifted its exposure from predominantly coking coal to an equal weighting of thermal and coking coal.
According to Mastermyne, the major Anglo Moranbah North Umbrella contract is due for renewal in the second half of FY19 and it is confident that will happen.
The improved coal price has supported a significant increase in tendering activity in both sustaining projects and more recently in growth projects.
Clients are continuing to rely heavily on contractors to catch up on work that had been deferred through the cycle but also to take the opportunity to increase supply into a stronger coal price market.
Mastermyne has achieved 12 months without recordable injuries on 12 of its 16 sites with the entire NSW operations completing 12 months recordable injury free. Injury rates have fallen to 6.5 from 18.2 for the full year - the lowest in the company's history.
Workforce numbers continued to increase over the past 12 months with total workforce numbers now at about 1000.
Resourcing has become more difficult as demand for labour increases, however, the company has successfully resourced all current projects.
Mastermyne expects further workforce growth this year based on present scope growth from existing projects and anticipates workforce numbers will reach 1200 during the first half of FY19.
With the tightening of people resources the company has reinitiated its cleanskin miner program, including the restart of its underground mine simulator in Mackay.