Engineering contractor RCR Tomlinson has posted an 83 per cent surge in first half profit to $16 million on strong activity in the resources sector.
The company posted record revenue of $388 million for the half, up 17 per cent on the previous corresponding period, and a 42 per cent increase in EBIT to a record $19.3 million.
"Underpinning the results were further improvements in operating margins, which increased to 5 per cent, compared to 4.1 per cent for the previous corresponding period," the company said in a statement.
The company lifted its cash reserves to $53.5 million at the end of the period from $45.2 at the end of 2011.
RCR lifted its interim dividend by 25 per cent to 2.5 cents a share, fully franked.
Managing director Paul Dalgleish said the result built on three consecutive years of earnings growth.
"Our performance for the six months to December 2012 has been driven by a well balanced order book, which included growth in both recurring and major projects revenues, in particular RCR's work on Fortescue's Solomon Project, Newcrest's Cadia Operations and BHP Billiton's Yarmina Project," he said.
"We anticipate this positive trend to continue, with revenues expected to remain robust throughout this financial year and into the next financial year.
"RCR remains well positioned, with a strong balance sheet and solid order book to continue to grow in-line with our strategy."RCR shares were off two cents to $2.26 at 10.15am.
The new magazine for a new generation of West Australians.Click here to download »
All the latest market figures from Australia and the world.Click here »
'The West Australian' is a trademark of West Australian Newspapers Limited 2013.
All rights reserved.
Select your state to see news for your area.