The increased earnings is due to higher revenues and improved gross margins in the period, as well as decrease in finance costs following through to the bottom line.
Revenue for the 1HFY2023 increased 7.6% y-o-y to A$418.9 million on the back of increased activity levels and the timing of projects revenue recognition.
Gross profit for the period increased 22.8% y-o-y to A$51.8 million, reflecting the increase in revenue and improvement in gross profit margins from 10.8% to 12.4%.
Administrative expenses increased by 8.8% in 1HFY2023 compared to 1HFY2022 mainly due to increase in IT cost and employee benefits resulting from the company’s increased activity. Meanwhile, finance costs reduced by 36.7%y-o-y in 1HFY2023 reflecting the lower levels of borrowings and lower interest rates payable on bank debt following repayment of the senior secured notes in Nov 2021.
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As at Dec 31, Civmec’s order book stood at A$1.178 billion. “The company’s continued order book growth and good visibility of upcoming projects from clients, coupled with our increasing client base for maintenance work, puts it in a strong position to continue delivering sustainable growth for our shareholders,” says CEO Patrick Tallon.
The board has declared an interim dividend of 2 Australian cents per share for the period.
Shares in Civmec traded 0.5 cents higher or 0.7% up on Feb 9 at 65.5 cents.
