Preliminary Full Year Results FY09
Brierty posts 80% profit increase on strong operating performance ...
Highlights
- Net profit of $6.7 million
- Revenue of $181.5 million
- EBITDA of $18.6 million
- Earnings per share of 6.15 cents
- Final dividend of 1 cent fully franked
- Profit rebound following difficult FY08
- Strong balance sheet and cash position
- Diverse business model with good contributions from all four business units
- Well positioned for further growth as resources sector improves
Civil and mining contractor Brierty Limited (ASX: BYL) today announced a preliminary, unaudited net profit after tax of $6.7 million for the year ended 30 June 2009.
The result represents an 80% increase on the previous pro forma net profit of $3.7 million in FY08 and confirms the strong profit rebound after a challenging FY08.
EBITDA was $18.6 million – a rise of 39% on the pro forma FY08 level – and EBITDA margin was up strongly at 10.2% compared to 6.1% previously (pro forma). Revenue was down 17% on the previous year as a result of changing market conditions.
Earnings per share were 6.15 cents and the Directors have declared a second half dividend of 1 cent bringing the full year dividend to 1.5 cents per share, fully franked. Brierty Managing Director Stuart Crofts said the result reflected a strong performance from all four business divisions, which reinforced the value of Brierty’s business model. “This preliminary result is very pleasing, particularly given the challenging economic environment during the past six months,” said Mr Crofts. “The fact we have grown underlying profitability so well on a lower revenue base is a very satisfying outcome. “This is the direct result of our focus on building strong project management and customer management systems that will protect operating margins even in difficult market conditions.” Mr Crofts said the Company’s enhanced financial position was evident in the strong balance sheet at year end, the improved cash position and a strong asset base with no impairment issues. During FY09, Brierty secured a range of new projects within the private and public sector, with new and existing clients. A key contract secured was the $130 million Bellamack residential development in the Northern Territory.
Brierty has been contracted by the NT Government to develop and market 670 residential blocks over a five year period.
The contract was secured with partner Urban Pacific and has provided Brierty with an important beachhead in the Northern Territory market. With a presence now established in Darwin, the Company expects to secure further work in the region in the year ahead.
Mr Crofts said the contract with Bellamack confirmed the Company’s ability to work with partners and to enter new markets.
Brierty was also awarded two new regional road infrastructure projects in the Pilbara region of northern Western Australia valued at $19 million.
The first project is with long standing customer Main Roads WA for construction of the Port Hedland Intersection Upgrade project.
The second road project is with the Port Hedland Port Authority to deliver the Utah Point Access Road project in Port Hedland.
Mr Crofts said Brierty’s long standing customer relationships meant the Company was well placed to secure new work in the 2010 financial year.
“Brierty has excellent relationships with corporates and government and a proven track record of securing repeat work from our existing client base,” he said.
Mr Crofts said Brierty was forecasting a solid but challenging FY10, based on the prevailing market conditions.
“Our focus is very much on maintaining margin and delivering great service to clients in any work we target.
“Despite the difficult market conditions, we are trading profitably and expect to do so through the year.”
Mr Crofts said Brierty remained confident about its business model and prospects into the long term, and remained focused on growing the business.
“In particular, we see firm opportunities in our most established business units, Transport Infrastructure and Land Development, where Brierty has decades of experience, very strong customer relationships and stands to benefit from major spending programs by the Federal and State governments.
“We have built an excellent platform for future growth and are well placed to take advantage as the resources sector recovers.
“We are financially strong, have the team that can drive our strategic growth and the right systems to deliver.” he said.