Decmil jumps on record profit

SHARES in Decmil Group spiked Thursday after the contractor posted its sixth consecutive year of record profits.

Staff Reporter

The company recorded a normalised net profit after tax of $45.2 million, up 15.6%, but its reported NPAT was $64.4 million after gains relating to the acquisition of Eastcoast Development Engineering.

The result came despite a 4.8% fall in revenue to $528.8 million, though the company increased its profit margin to 8.5% from 7%.

Earnings before interest, tax, depreciation and amortisation jumped 27.5% to $71 million.

Decmil CEO Scott Criddle said he was delighted to increase profits in a challenging environment.

“Decmil’s response has been to work harder, work smarter, and above all, focus on our strategy of diversifying risk and earnings, which is now starting to come to fruition,” he said.

“As a result, we have won major contracts from new clients, we have extended our footprint into new geographic markets and we have started building solid recurring revenues from new divisions in the group.”

The bulk of the company’s work still comes from the mining sector, though a recent contract win with Shell is broadening the company’s scope.

Decmil has cash of $43.7 million and a 2014 financial year order book of $420 million.

The company will pay a final dividend of 8c per share.