Just months after completing a reverse takeover of listed engineering consultancy Emerson Stewart Group, Ocean to Outback Contracting says it is planning to sell the consulting subsidiary and focus on its contracting and surveying businesses.
Now trading as OTOC Limited, the company has reported a half-year net profit of $1.75 million, or $2.1 million from continuing operations. This was after booking $2.9 million of losses from cost overruns on two projects and one-off corporate costs related to the reverse takeover.
Revenue was up to $70.5 million, from $18.7 million the previous corresponding half-year, OTOC said.
The company said its two main subsidiaries had a strong order book and robust outlook.
OTOC Group (formerly Ocean to Outback Contracting) has a record order book of $77 million, while its surveying business Whelans has a $10 million order book.
“OTOC is delighted to continue our strong working relationship with blue-chip clients such as Rio Tinto, BHP, Calibre and Hancock Prospecting,” chief executive Adam Lamond said.
“OTOC’s strong market position and track record of delivery ensures we are well positioned to capitalise on the record investment in mining and oil and gas.”
Mr Lamond said the company was confident a transaction for the sale of its Emerson Stewart Consulting business would be completed in a “relatively short timeframe”.
By close of trade today OTOC shares had gained 20 per cent, trading at 12 cents.
