Shares in diversified contractor Brierty have risen 18 per cent following news it expects total revenue of around $250 million for the 2013-14 financial year.
The company also announced it expected profit to be in line with the past two financial years; it anticipated profit in the range of $9 million to $10 million when results are finalised in August.
The results are better than what has been expected of Brierty given the increasingly competitive market, and prompted enthusiasm from the market with shares increasing from 44 cents at market open to 52 cents at 3:20pm WST today.
It's despite the revenue figure being the company's lowest in three years and a 14 per cent decrease on the 2012-13 result.
Managing director Peter McBain said Brierty had had a strong year despite demand being flat.
“Our ability to win contracts in a competitive environment like this is a great reflection of the consistent development of Brierty’s strengths - the delivery of projects safely and cost effectively for clients,” Mr McBain said in a statement.
“Our diversified service offering ensured we remained well placed in FY2014 while contracted work remained flat. With growing recognition of Brierty’s capability and capacity, this diversity has now seen us win significant work across a wide range of products.’’
Brierty has won four significant contracts during the past three months, which prompted the company to announce expected revenue of approximately $320 million for the year ending June 30 2015.
Those contracts include a $300 million deal with Rio Tinto for mining and civil work at its Western Turner Suncline Stage 2 project over the next four and a half years.
Brierty will spend $30 million on equipment required to complete that contract.
It has also won contracts worth more than $72 million with Main Roads Australia for upgrades to the Great Northern and Great Eastern Highways.
Meanwhile, construction of a 1.6 kilometre road and associated infrastructure at Perth Airport is expected to add $17 million to Brierty’s coffers.
The company’s total order book stands at $570 million, of which $270 million relates to the 2014-15 financial year.
