The company is issuing a warning on revenue, having already suffered a 16% decline in the FY2010 year-on-year to $1.25 billion.

Macmahon, which is in advanced stages of negotiation on several upcoming contracts, views the medium and long term positively after coming through a difficult period during the global financial crisis, and plans to tender for project opportunities across both the resources and infrastructure sectors.

“Commodity prices have rebounded significantly since the global financial crisis and a strong level of demand is expected to continue,” the company said.

“However, the proposed Minerals Resource Rent Tax (MRRT) has led to some short-term uncertainty for domestic projects that will be affected by the tax if it is implemented.

“In particular, a number of greenfield iron ore projects proposed by small to mid-tier players are likely to be impacted and will have difficulty in progressing their development plans until greater fiscal certainty is achieved.

“Delays in contract start-ups are still occurring and until confidence and certainty returns to the market, the company remains cautious on the short-term outlook.

“Revenue is expected to exceed $1.25 billion for 2011, and growth above this level is dependent on the amount of new work secured in the coming months.”

Of particular interest to the coal sector was Machamon’s rail line extension projects in Queensland and New South Wales.

In Queensland, the company was awarded the $113 million Goonyella to Abbot Point rail expansion project, upgrade and expansion works along the rail corridor between the Abbot Point Coal Terminal and Bogie River for Queensland Rail, of which Macmahon’s share is $90 million.

The company also won the $100 million Ulan Line Alliance project in NSW to design and construct 11 passing loops and associated tunnel ventilation works for the Australian Rail Track Consortium, of which Macmahon’s share was $60 million.

New work was secured in Queensland’s coal market, with the award of the Cameby Downs contract for Syntech Resources.

During the year, $2.1 billion of new work, contract extensions and scope increases were awarded.

At June 30, 2010, the company’s order book stood at $2.2 billion, an increase of 57% on the previous year’s $1.4 billion.

The company’s mining division extended all its contracts which were due for renewal in the period, including the Orebody 18/Wheelarra open cut mines in Western Australia.

The Renison underground tin mine contract was also awarded, signalling the company’s return to the Tasmanian mining market.

Overseas markets provided good growth opportunities for the company.

It was awarded its first major contract in Hong Kong which involves Macmahon utilising both its construction and mining expertise to deliver a key tunnelling contract.

Additional work and contract extensions were secured in Asia with Lafarge. The strong relationship with Lafarge resulted in the award of a new contract in Nigeria, the first project in Africa for Macmahon.

The NSW infrastructure market has been a key focus for Macmahon’s construction division, with the business building up a larger presence in this sector underpinned by its contracts in rail, road and water.

Macmahon’s shares were up by 1.5c to 59c in morning trade.