Forge posts 60pc first-half profit PDF Print E-mail
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Monday, 18 February 2013 15:17

Forge Group will pursue growth opportunities and acquisitions, after posting a 60 per cent increase in first half profit.

The Perth-based engineering and construction company reported net profit for the six months to December 2012 of $33.9 million, up from $21.3 million in the previous corresponding period.

Revenue was $503 million, more than double the previous result of $226 million.

Forge managed to secure around $462 million of new contracts, bringing the company's order book to more than $1 billion.

CEO David Simpson said Forge remained on track to meet its full year profit guidance of between $90 million and $100 million.

"Our main priority in the coming months is to ensure we achieve excellent project delivery across all of our divisions," Mr Simpson said.

"We will also place continued emphasis on growing our asset management capabilities where we see real growth potential."

With a solid and diversified order book and a strong cash position, Forge was in good shape for the remainder of the year and into fiscal 2014, he said.

Forge plans to broaden its presence in the eastern states where it is delivering projects in the power, minerals and resources sectors.

The company said it was well funded with more than $200 million of cash and receivables.

"This gives us the flexibility to pursue organic growth opportunities and acquisitions," Mr Simpson said.

The minerals and resources division posted a five per cent increase in revenue to $55 million while the power division, previously known as CTEC, recorded revenue of $202.5 million in the half.

The company declared a fully franked interim dividend of 10 cents, up from six cents on the previous corresponding period.

 

 

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