Norfolk Group (NFK), an engineering and building services provider, fell 18cents to $2.01 despite posting a $8.8 million profit in its maiden half yearly result.
For the first half ended 30 September 2007, the company announced a pro forma net profit after tax of $8.8 million, or 6.77 cents per share.
"Earnings for the first six months were more than half those achieved by the group for the full year ended 31 March 2007, and placed the company on track to deliver its FY2008 prospectus forecast earnings of $19.5 million," managing director Glenn Wallace said.
This is the first result released to the market since the company's listing on the Australian Stock Exchange in July 2007.
"Maintenance services provide a stable, recurring source of earnings and deliver higher gross margins than installation contracts," Wallace said.
The company acquired an Indian-based company, Trans-American Air Conditioning in August 2007.
It is exploring further opportunities in the Middle East.
More than 80% of FY2008 gross profit is underpinned by current contracts, work orders or existing service relationships.
Norfolk provides electrical, communications, HVAC (heating, ventilation and air conditioning), passive fire protection and property services and products in Australia, New Zealand and India.
It operates through three different divisions and has market capitalisation of about $285 million.
Since its debut, the stock has ranged between $1.52 – $2.24.
