SINGAPORE (Aug 28): Civmec, the construction and engineering services provider, saw its earnings plunge 96.3% to A$120,000 ($112,600) for the 4Q19 ended June, from A$3.2 million a year ago.
Earnings per share fell to 0.02 cent for 4Q19, compared to 0.64 cent in 4Q18.
This brings the group’s full year earnings to A$6.1 million for FY19, some 66.5% lower than earnings of A$18.1 million a year ago.
The decline came on the back of lower revenue in 4Q19, which dropped 66.1% to A$73.4 million, from A$216.5 million a year ago.
This was mainly due to projects completing in the period and the timing of commencement of new projects.
The group’s order book was A$819 million as at June 30.
As at end June, cash and cash equivalents stood at A$40.7 million.
The group has declared a first and final dividend of 0.7 cent for FY19, the same as a year ago.
“FY19 was a year of consolidation, focused on the completion of a number of significant projects,” says executive chairman James Fitzgerald.
Going forward, the group says it will continue to deliver on its strategy of establishing consistent and recurring revenue streams and capitalising on major expansion project opportunities with key clients.
“With growing investment in our primary operating sectors, we are optimistic about the forward opportunities pipeline,” says Patrick Tallon, Civmec’s CEO.
“With the completion of our new world-class assembly and maintenance hall during FY20, our facility at Henderson will be the largest undercover modularisation and maintenance facility in Australia, ensuring we are well positioned to capitalise on these opportunities,” he adds.
Barring unforeseen circumstances, the group says it expects to be profitable in FY20.
Shares in Civmec closed flat at 33.5 cents on Wednesday before the results announcement.
