Decmil Group s Osborne Park headquarters.
Decmil Group's Osborne Park headquarters.

UPDATE 2.35pm: Shares in Decmil fell after the company posted an 18.2 per cent slump in full-year profit to $52.6 million.

Stripping out one-off gains from business combinations last year, the engineering and construction contractor lifted its net profit by 10 per cent to $49.7 million.

Revenue was up 16.9 per cent to $618.4 million.

The company declared a final dividend of 8.5 cents a share fully-franked, up half a cent on last year and bringing its full-year payout to 13 cents a share, up from 12 cents the previous year.

The dividend will be paid on September 26.

Decmil chief executive Scott Criddle said the result was pleasing given a challenging environment for resource sector construction.

"This (result) can be attributed to our strategy of diversifying our revenue sources with government, infrastructure, upstream coal seam gas work and broader civil capability now strong features in the business," he said.

The company said it held $59.3 million in cash, no debt at the end of the period and had started the new year with an order book of about $400 million.

Mr Criddle said he expected to continue to see a subdued and competitive landscape for construction in the resources sector with margins reducing to long term levels experienced before the construction boom of recent years.

"However, Decmil has continued to evolve its client base and core capabilities during the financial year, and the company continues to see significant potential in these new areas of the business to provide greater sources and diversity of revenue in the coming years," he said.

Decmil shares closed down 10 cents, or 4.53 per cent, at $2.11.

The West Australian

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