CONSTRUCTION services company PCH Group has announced a record net profit for the second successive year with pre-tax earnings up 59 per cent to $8.3 million.
The company also announced a 1 cent a share fully franked dividend.
It reported a net after-tax profit of $6.9 million, receiving the benefit of a $1 million one-off tax credit due to the company adopting the tax consolidation regime.
The profit figure came on the back of a 45 per cent increase in sales revenues to $49 million.
A consistent performance over the two halves helped the result. The company continued the strong start of the December half but pre-tax profit for the second period was $3.9 million, down $500,000 on the first half.
The company puts that difference down to exchange losses and gains.
Earnings before interest, tax, depreciation and amortisation increased 51 per cent to $11 million.
At June 30 PCH reported net cash reserves of $1.6 million.
PCH managing director James Cullen said the company had a positive outlook over the next few years with trading conditions continuing to be buoyant.
"The company has work on hand in its overseas oil and gas operations until late 2007 and is well placed to continue benefiting from significant levels of new investment in major Australian resource projects," he said.
"In addition, we are expanding rapidly on the east coast while the Western Australian housing sector activity is similar to that experienced during the pre-GST boom."
PCH specialises in the hire and installation of scaffolding and is experiencing growth in all of its operational sectors – the mining and international oil and gas industries and the residential and commercial building sectors.
The company started in 1995 with a $1.5 million acquisition of a Perth residential scaffolding hire business and implemented a growth plan of targeting the international resources and oil and gas industries.
It is in the process of expanding into the construction industry on the east coast of Australia.
