RCR up on revenue, profit surge

UPDATE 2.50pm: RCR Tomlinson shares were firmer after the company lifted its full-year profit by 16 per cent on the back of a 49 per cent surge in revenue.

The engineering and infrastructure company posted a bottom line profit of $43.3 million on revenue of $1.3 billion.

Stripping out $4 million in acquisition costs, profit was up 22 per cent to a record $47.3 million.

The company lifted its final, partially-franked dividend to seven cents from 5.75 cents the previous year, bringing its full-year dividend to 10 cents from 8.25 cents previously.

RCR said the result had been driven by diversification into technology-based infrastructure markets at the beginning of the year and supported by solid performances across its other core resources and energy businesses.

RCR managing director Paul Dalgleish said the company had delivered a fifth consecutive year of record revenue and earnings, while reducing net debt to levels to a gearing ratio of 16.5 per cent.

"Since the acquisition of our infrastructure business, at the beginning of FY14, we have improved operating margins and we will continue to drive profitability through quality revenue and reducing the cost base over the coming year," he said.

"Both our existing Resources and Energy businesses have continued to deliver strong results this year due largely to our technology differentiators and the highly specialised nature of our manufacturing, off-site repair and maintenance work."

RCR said about 70 per cent of revenues and earnings were generated from the infrastructure and energy markets, a strong recurring revenue base and a secured order book of $790 million.

The company said it had a strong base for organic growth and growth by acquisitions.

RCR shares were up 20 cents, or 6.5 per cent, at $3.24 at the close.