INTERNATIONAL COAL NEWS

Coffey's profits up

MINING and infrastructure consulting group Coffey International today reported an 82% increase in...

Kate Haycock

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The company’s revenue came to a record $558.6 million, half again higher than the 2006-2007 fiscal year, and cashflow from operating activities of $58.6 million, up from $8.4 million.

During the year, Coffey purchased some ten other companies and expanded into new markets including Brazil and Canada, and also expanded into rail and infrastructure transactions.

The company said its operating earnings before interest tax and amortization of $43 million represented growth of 70.4% from the previous year and included 37% organic growth from existing businesses and non-organic growth of 33% from acquired businesses.

The company’s consulting division, which includes its mining business, was one of its better performers and provided an operating EBITDA of $45.8 million.

Coffey said during the year it picked up major new mining projects including BHP Billiton, had key wins with Rio Tinto in the Hunter Valley in its geotechnical work and also continued working on major project management operations for miners in hard rock and oil and gas.

Overall, resources provided around 30% of Coffey’s revenue stream while infrastructure was the major earner, responsible for 45% of the consultancy’s revenue.

Shares in Coffey, which is based in Sydney, were last trading at $2.19, up 5c or 2.3%.

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