Brierty on stable ground

CONTRACTOR Brierty has reported a net profit after tax of $A9.9 million for the 2014 financial year, down from the FY13 NPAT of $10.2 million.

Marion Lopez

Earnings before interest, tax, depreciation and amortisation was reported at $25.6 million.

Revenue for FY14 was $251.1 million, a reduction from the $292.4 million reported at the same time last year due to the competitive conditions that prevailed in the sector throughout the year.

Despite the slight adverse effect on revenue, Brierty said it managed to limit further financial impacts from the tough market conditions by targeting quality contracts, actively managing costs and continuing to perform safely and efficiently across its portfolio of projects.

“In 12 months Brierty more than doubled its cash on hand to $27.2 million, while gross debt was cut by more than $8 million,” Brierty managing director Peter McBain said.

“This prudent capital management allowed us to deliver value for shareholders by comfortably maintaining our dividend payout ratio while providing us with a solid base to deliver on our record order book.”

Brierty maintained a dividend of 1.75c, bringing its full-year dividend to 3c, in line with FY13.

Despite competitive conditions, Brierty’s order book for FY15 stands at a record $570 million.

With this in place and combined with the company’s financial flexibility, Brierty expects to deliver an increase in revenue for FY15 to at least $300 million.

Brierty is continuing to target quality, large projects.

“Brierty has entered the year with negligible debt, which provides significant flexibility to invest capital to fund both our current order book – particularly the Western Turner project for Rio Tinto – and other new projects,” McBain said.

“Works have commenced on major civil projects for Main Roads Western Australia and Perth Airport, as well as on our major mining contract for Rio Tinto and our land development project at the Zuccoli stage 2 development in the Northern Territory.

“Our priorities for the coming 12 months remain unchanged – we will focus on consistently delivering quality projects safely and cost efficiently for clients across our diverse range of services