SEDGMAN UNEARTHS A PROFIT

Written on the 27 August 2015

SEDGMAN UNEARTHS A PROFIT SEDGMAN (ASX: SDM) is beginning to see the payoffs of its diversification strategy, increasing its profits during a challenging period.

The resource sector services company has reported an underlying profit after tax of $19.4 million for the full year, a significant increase from its break-even figure reported in the prior corresponding period.

This was from a sales revenue of $390.4 million, up from $355.9 million in full year 2014. A number of significant engineering, procurement and construction (EPC) projects progressed, compared with lower activity experienced the same time last year.

Sedgman CEO and managing director Peter Watson (pictured) says the company performed well in light of subdued market conditions.

This comes as its geographic focus is now split 60 per cent domestic to 40 per cent international, and coal projects comprise 40 per cent of the business, while other commodities take up the remainder. 

"The full year results represent the third consecutive half year of strong profitability and delivery of sustained earnings through improved business performance," says Watson.

"Our commodity and geographic diversification continues to strengthen the business and our track record of successful project and operations delivery has continued."

Watson says Sedgman's differentiation from its peers has helped increase its order book to $509 million as of June 30, up from $385 million at that time last year.

The company is increasingly more mindful of metrics such as cost, time and facility performance to overcome subdued market conditions, and anticipates its strategy will deliver 'sustained earnings' in financial year 2016.

Sedgman will pay a fully-franked final dividend of 3.8c per share and a fully-franked 2.2c per share special dividend. As part of an enhanced capital management plan, the company intends to implement a series of fully-franked special dividends of 2.2c per share paid together with each interim and final dividend.



Latest News

ASSET SALES ON THE CARDS FOR E-TAILER SURFSTITCH AS LEGAL COSTS LOOM

EMBATTLED online sport clothing retailer Surfstitch (ASX: SRF) is looking at selling some of its assets as it faces c...

CROC INDUSTRY WORTH MORE THAN $100M TO AUSTRALIAN ECONOMY

CROCODILE farming is big business in Australia's top end, with the industry contributing over $100 million to ...

HOW A YOUNG ENTREPRENEUR 'FELL' INTO A BUSINESS THAT TURNS OVER $50M A YEAR

IN his first year of business as a 26-year-old, he built 18 homes which delivered a turnover of just under $4 million...

SKYCITY INJECTS $330 MILLION INTO FESTIVAL PLAZA REDEVELOPMENT

THE long-neglected and much maligned Festival Plaza in Adelaide has received a hero in the form of long-time neigh...

Related News

ASSET SALES ON THE CARDS FOR E-TAILER SURFSTITCH AS LEGAL COSTS LOOM

EMBATTLED online sport clothing retailer Surfstitch (ASX: SRF) is looking at selling some of its assets as it faces c...

CROC INDUSTRY WORTH MORE THAN $100M TO AUSTRALIAN ECONOMY

CROCODILE farming is big business in Australia's top end, with the industry contributing over $100 million to ...

HOW A YOUNG ENTREPRENEUR 'FELL' INTO A BUSINESS THAT TURNS OVER $50M A YEAR

IN his first year of business as a 26-year-old, he built 18 homes which delivered a turnover of just under $4 million...

SKYCITY INJECTS $330 MILLION INTO FESTIVAL PLAZA REDEVELOPMENT

THE long-neglected and much maligned Festival Plaza in Adelaide has received a hero in the form of long-time neigh...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter