While the outlook for the 2012/13 financial year remains in line with last year’s record, when revenue totalled $A232.2 million and net profit after tax was $22.4 million, the company is less optimistic about the year ahead.

While the company normally limits financial guidance to the current financial year, Lycopodium said that changing market conditions warranted an update to shareholders for 2013/14.

“On the pessimistic side, the recent deferral of projects by the major mines, the progressive completion of the iron ore expansion in the Pilbara and the challenging market conditions for junior miners has removed a baseload of work in Perth and will, we believe, increase competition in the sector,” Lycopodium said.

In addition, the company was expecting three of its large projects to be completed in 2013.

Lycopodium believed it was unlikely that sufficient work would be obtained in the timeframe required to maintain the record revenues of 2011/12 and 2012 through to the next financial year.

“The board is of the current view that there will be a modest pullback and is anticipating a turnover of $180-200 million for the 2013/14 financial year,” Lycopodium said.

It plans to provide more clarification against this guidance in future releases to the market.

On a more positive note, the company said it was witnessing the emergence of opportunities in brownfield optimisation and expansion studies and expected a number of these to progress into implementation.

Lycopodium, which was listed on the Australian Securities Exchange in 2004, services the rail, infrastructure, minerals and asset management sectors.

The Marandoo iron ore plant upgrade for Rio Tinto is one of its current contracts, while it has also completed engineering work for Gryphon Minerals in Africa and AngloGold Ashanti at the massive Tropicana gold project.