The West

GR Engineering managing director Geoff Jones. Picture: Simon Santi/The West Australian.
GR Engineering managing director Geoff Jones. Picture: Simon Santi/The West Australian.

UPDATE 1.20pm: Shares in GR Engineering jumped after the mining contractor posted a first-half profit of $7.3 million, up from $1.3 million in the previous corresponding period.

The higher result was achieved despite a 12 per cent dip in revenue to $49.7 million.

The company will issue a partially franked interim dividend of three cents a share.

Managing director Geoff Jones said it was pleasing that despite difficult trading conditions in the sector and the impact on revenue caused by project commencement timing, the company had succeeded in producing a solid operational and financial performance for the half year.

"We have achieved significant improvements in our cash flow, earnings and net profit over the same period last year despite the lower revenue, largely as a result of diligent contract management and cost control," he said.

"Our assessment of work on hand indicates improved revenues and consistent financial outcomes for the balance of 2014."

GR Engineering said it had net cash of $45 million at the end of December, with $45.7 million in cash deposits.

Shares in the company jumped 10.5 cents, or 17.07 per cent, to close at 72 cents.

The West Australian

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