SEDGMAN UNEARTHS $26M PROFIT

SEDGMAN UNEARTHS $26M PROFIT

FLOODING and a Cyclone Yasi may have interrupted Sedgman’s (ASX:SDM) coal operations, but it has not stopped the mining services group from reporting a net profit of $26 million for FY11.

Representing a 4.2 per cent jump on FY10, the figure is at the upper end of market guidance provided earlier this year. The group also declared 65 per cent growth in revenue to $555 million for the year to June 30.

Sedgman MD and CEO Nick Jukes credited his employer’s Australian and international resources projects for driving growth in annual revenue, earnings and dividends.

“The year’s second half was strong and Sedgman’s order book stood at $606 million with a record three-year project pipeline of $7.6 billion as at June 30, 2011,” says Jukes.

Sedgman’s Engineering Services and Operations benefitted from robust resource industry conditions, growing annual revenue by 95.6 per cent.

“The solid results we have achieved show our strategy to diversify into global coal and metals projects – and is creating value for our shareholders,” says Jukes.

However, the group carried out a $4.1 million asset write-down at its metals operations and faced $2.9 million in amortisation charges for intangible assets from previous acquisitions.

Share prices increased slightly today to $2 per unit.

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