The better return for the 2009-10 financial year was achieved despite a $20 million goodwill write-down.

But Sedgman also gained $3.3 million in tax benefits for research and development concessions, and another $2.1 million of deductions for acquisition costs in its customer contracts due to changes in taxation law.

“Our international expansion strategy is delivering substantial benefits,” Sedgman managing director Mark Read said.

“We are securing major engineering, procurement and construction (EPC) projects and our order book and pipeline of targeted projects are now at record levels.”

Sedgman is processing more than 20 million tonnes per annum of coal and another 9Mtpa under various operations contracts which provide the company with a recurring and long-term revenue stream.

Contracts won during the recent financial year include the $50 million coal-handling and preparation plant for Whitehaven Coal’s Narrabri mine.

But the big wins came from coal projects overseas, including Xstrata Coal’s $123 million Atcom CHPP in South Africa, Riversdale Mining’s $143 million Benga CHPP in Mozambique, and the second-stage design contract for the giant Ukhaa Khudag (UHG) mine in Mongolia.

Sedgman also won a $US85 million EPC contract for the Boseto copper project in Botswana.

Read is confident of more growth in the years ahead.

“Sedgman’s order book now stands at $706 million and has increased by $176 million over the past 12 months,” Read said.

“Targeted projects in our three-year pipeline have increased by $1.5 billion to $6.3 billion.”

Sedgman declared a fully franked final dividend of 3.5c per share which will be paid on September 17.

Total dividends for the 2009-10 financial year reached 6.5c per share – up half a cent from the previous year.

At the end of June Sedgman’s gross debt was $42.8 million while its net cash was $15.2 million.

Sedgman shares are up 4.5c or 2.8% to $1.65 this morning.