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MACMAHON HOLDINGS LIMITED — Earnings Release 2007
Aug 20, 2007
65291_rns_2007-08-20_3dc94c47-72e4-4900-82c4-5d0a613a799c.pdf
Earnings Release
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Media Statement
Tuesday 21 August 2007
Macmahon Delivers Impressive Full Year Result
Highlights
o Record Results
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Reported net profit after tax of $44.5 million, up 493%
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Underlying net profit after tax of $33.4 million, up 22%
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Revenue of $966 million, up 12%
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EBIT margin increase from 5.4% to 6.2%
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Full year dividend of 3.0 cents per share
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Order book of $2.0 billion, up 65% on 2006
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10% improvement in safety (TRIFR)
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Acquisition of ARD/CRE
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Annual Total Shareholder Return of 65%
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Allplant sale delivers $67.0 million cash and profit on the sale of $11.1 million
The Directors of MACMAHON HOLDINGS LIMITED (ASX:MAH) today announced a record underlying profit after tax of $33.4 million, 22 per cent higher than the 2006 result, driven by revenue growth and increased margins.
Earnings Before Interest and Tax (EBIT) of $59.7 million was 27 per cent higher than 2006, with EBIT margins increasing from 5.4 to 6.2 per cent.
Underlying Earnings Per Share was 6.4 cents (2006: 5.5 cents per share), an impressive 16.4% increase on 2006. Return on equity was 15.8 per cent (2006: 15.9 per cent).
The Directors have declared a final fully franked dividend of 2.0 cents per share, taking the full year dividend to 3.0 cents per share (2006: 2.0 cents).
Reported Profit After Tax of $44.5 million, is also record, a 493 per cent increase on the 2006 reported profit. This year’s reported profit includes a non-recurring gain on the sale of the Allplant Hire business of $11.1 million (after tax).
Total Revenue for the Group was $966 million, up $102 million or 12 per cent on last year, driven by higher activity in both the construction and mining businesses.
Mining revenue grew as a result of increased activity at existing sites, the awarding of new contracts and through the acquisition of the specialised mining services businesses ARD and CRE.
Level 3 1 Adelaide Terrace East Perth WA 6004 PO Box 198 Cannington WA 6987
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Macmahon Holdings Ltd ABN 93 007 634 406
Telephone: (08) 9365 1111 Facsimile: (08) 9365 1186 Web: www.macmahon.com.au Email: [email protected]
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Construction revenue growth was driven by demand for contracting services in Western Australia which continued to strengthen, with major works being undertaken for the WA Government and the large iron ore producers. Increased market share in the East Coast construction sector also positively impacted revenue through projects including, the Ross River Dam, Leura to Katoomba Road Upgrade, Logan River Catchment and MVM Rail.
Chief Executive Officer, Nick Bowen, stated that the result demonstrated the Company’s strategy was succeeding in delivering value to shareholders.
“2007 has been a watershed year for Macmahon. By restructuring the business to focus on core mining and construction activities, Macmahon has been able to grow, delivering significant benefits across the Group,” he said.
“Our expansion into the East Coast has continued to gain momentum and we now see the Company emerging as a top-tier contractor in the national construction market.
“Macmahon is in a perfect position to take advantage of a buoyant resource sector and increased government infrastructure spending.
“The outlook for our mining and construction businesses has never been stronger. At 30 June, the Macmahon order book stood at a record high $2.0 billion, up 65 per cent on the same time last year.
“We expect to be able to grow our revenue by approximately 30 per cent and maintain margins which will deliver strong profit growth in the 2008 financial year. We also remain very optimistic for 2009 and beyond and expect strong growth rates in revenue and profit to continue,” Mr Bowen said.
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Media Contact
Investor Contact
Gareth Widger Theresa Mlikota Group Public Affairs Manager General Manager – Corporate Finance & Investor Relations Mobile: 0419 918 272 Mobile: 0407 470 859
Macmahon Holdings Ltd ABN 93 007 634 406 Level 3 1 Adelaide Terrace East Perth WA 6004 PO Box 198 Cannington WA 6987 Telephone: (08) 9365 1111 Facsimile: (08) 9365 1186 Web: www.macmahon.com.au Email: [email protected]