SEYMOUR WHYTE CEMENTS PROFIT POSITION
Written on the 26 August 2015
SEYMOUR Whyte Limited (ASX:SWL) has managed to maintain a healthy bottom line, despite a challenging year in the construction industry.
The infrastructure firm posted a full-year profit of $9.9 million in line with forecast, a slight dip from $10.9 million in the previous year.
Revenue decreased from $311 million in FY14 to $269.8 million, however the group's cash position remained strong at $42.2 million up by $1.4 million.
Seymour Whyte's diversification strategy implemented in FY14 is paying dividends for the company, by entering new sectors rather than relying on individual regions or markets.
The utilities infrastructure business, particularly transport in Queensland, offset soft market conditions experienced in the first half.
"Even in the current competitive market, Seymour Whyte consistently wins work," the company says.
"We will continue to strengthen our core capabilities, leverage our areas of specialisation and achieve our goal of transferring skills across a more diverse geographic footprint."
The transport infrastructure business completed a number of projects in FY15, including the Gateway Upgrade North, Smith Street Olsen Avenue Interchange Upgrade, Great Western Highway Upgrade, Bullaburra and North Coast Remedial Flood Works.
The business also cemented its presence in NSW, with work in the state contributing 31 per cent of infrastructure turnover. The business began targeting Victoria in July, with a number of active tenders for regional road upgrades.
Seymour Whyte has a forward order book of $335 million, a 60 per cent lift compared to the previous year, with work-in-hand of $278 million in FY16.
Although infrastructure spending by the Queensland Government is expected to ease, the decline will be partially offset by the pipeline of projects in NSW and growth opportunities in Victoria.
A final dividend of 6.25c per share will be paid on October 16.