Engineering and property services firm United Group (UGL) lifted dividend 10% for the year to June 30 and says it is in good shape and well placed to grow earnings and revenue from 2011.
The company declared a final dividend of 35 cents per share, up one cent on the final for the 2008 year.
The total dividend for the year was 64 cents, fully franked, compared to 58 cents in the prior year, a rise of 10.3%.
The shares rose 3.1% to $13.10, up 40 cents on the day.
The market seemed to ignore an outlook for 2010 which hinted at a small fall in revenues and static earnings growth.
UGL said net profit rose 8.7% to $142.48 million for the year ended June 30.
But it also gave a net after tax profit adjusted for the amortisation of intangibles of $150.3 million, up 10.4%. This one was highlighted in the release several times because it was had a slightly higher rate of growth.
Revenue for the 2009 year rose 36.5% to $4.76 billion, indicating that while topline growth was strong, the bottom line was hurt by lowered margins.
"UGL is in very good shape, with a strong order book and balance sheet, and exposure to compelling markets," UGL chief executive Richard Leupen said in a statement.
"We have the financial and strategic ability to pursue growth options, both organic and through acquisitions.
"Based on current estimates, UGL expects revenue for the 2010 financial year to be around $4.5 billion and adjusted NPAT (net profit after tax) to be around $150 million."
That would put revenue around $200 million lower in 2010 than in 2009, and profit around the same as 2009, or some $7 million higher, depending on whether you used the net after tax figure, or the one United highlighted as being after tax and amortisation of intangibles.
"We now have a solid foundation in place to grow revenue and earnings from 2011 onwards and pursue our long-term growth objectives," United said in the statement, indicating that 2010 has been all but written off.
UGL Managing Director and CEO Richard Leupen said in yesterday’s statement that "the record result was a reflection of the strength of UGL’s long-term strategy and business model and the essential nature of its underlying operations.
“This is UGL’s ninth consecutive year of profit growth and another record result, highlighting the resilience and strength of our underlying business,” Mr Leupen said.
“All four of our divisions contributed strongly and continue to lead their markets.
“The six months to 30 June 2009 was our strongest half to date in terms of revenue, while we have continued to sell strongly into all our core markets at the same time as investing in systems and processes to better manage our business.
“Reflecting the general business conditions, especially in the corporate real estate sector, there was a decrease in margins in the 2009 financial year.
"However, there was an improvement in the second half versus the first half.
“We have an order book exposed to fundamental growth markets, a stable underlying earnings base and a robust, flexible balance sheet. This gives us a strong and stable platform to pursue the next stage in our growth.
“There is scope for us to expand through acquisition, while we also see growth opportunities in existing markets such as rail transport, outsourcing of property services, liquefied natural gas (LNG) and clean power and water projects."
Perth-based engineer, Monadelphous Group yesterday reported a 6.8% rise in net profit for 2009 and says it’s in a strong position for the current financial year.
The company yesterday said net profit for the year ended June 30 was $74.24 million, up from $69.54 million in the 2008 year.
On an underlying basis, net profit was up 12.1% and in line with its guidance for double digit growth for 2009, the company said in yesterday’s statement.
The market liked the news, marking up the shares more than 7% on the day, or over 80 cents to $12.12.
"Monadelphous has entered 2009/10 with a healthy forward workload as industry conditions begin to ease and normalise," it said in yesterday’s statement.
"Over the last year, many of Monadelphous’ traditional resources customers had responded to the changing global economic environment by reducing capital expenditure and operating costs.
"Despite this, the majority of the company’s committed projects are proceeding as planned.
"Although uncertainty remains, the company’s broadening market exposure in the oil and gas and infrastructure sectors continues to provide a relatively healthy pipeline of opportunities – testified to by the current high demand for tendering," the company said in the statement.
The group’s annual profit was driven by solid growth across all of its operating divisions, with total sales revenue increasing 17.7% to a record $1.12 billion.
During 2008/09, the company said it gained $700 million in new contracts and contract extensions across its key markets of resources, energy and infrastructure.
Monadelphous was in May awarded a $170 million contract with Woodside Petroleum Ltd for the Pluto liquefied natural gas project in Western Australi
