Melbourne-based Programmed Maintenance Services has posted a 7% fall in annual net profit, as suggested in a trading update earlier this month.
The company yesterday reported net profits of $26.164 million for the year to March, down 6.8% from the result in 2009 result.
Revenue of $1,163.3 million was down 5% on 2009 and earnings for the year before interest, tax and amortisation (EBITA) was $58.9 million, down 7% on 2009, but down 14% on the normalised 2009 result.
Programmed declared a final dividend of 6c fully franked, making 9c for the year, fully franked, and after total 14.5c fully franked in fiscal 2009.
The company paid a 5c a share final for 2009 after cutting the payout from the 9.5 interim for the same year. A 3c a share dividend was paid for the first half of the 2010 year.
The directors have reinstated the 50% payout ratio for the FY10 final dividend with the 6c a share final at that level.
"It is the directors’ current intention to maintain a 50% payout ratio into the future. The dividend reinvestment plan has been suspended," the company said.
The company said conditions within its property and infrastructure segment remained tight, but were improving in the resources and industrial segment, and in its workforce supply area.
"Whilst new opportunities are being developed with the government sector (in Property and Infrastructure), many retail and commercial clients are cautious about their own prospects and are maintaining low levels of maintenance and project expenditures," directors said in yesterday’s statement.
"Conditions within the Resources & Industrial segment have improved with an expansion of offshore oil and gas opportunities forecast in the second half.
"A general but slow recovery is occurring within the Workforce segment with leading indicators pointing to increased casual labour demand (although) generally small and medium size businesses have yet to increase their demand for staff and remain cautious," directors said.
Programmed shares rose 4c to $2.58.
In contrast, building and engineer services contractor, Norfolk Group had a record year in some respects, despite the still tough trading conditions in some sectors.
The company yesterday reported record revenue for the 2010 financial year to March, and said it had a record backlog of work for the coming year.
As a result the shares jumped 15%, or 11c, to 83c yesterday.
Annual profit rebounded strongly from the slump-induced slide in 2009, rising almost 300% in 2010, with a more sedate 10% rise forecast for the current year, the company told the ASX yesterday.
Norfolk reported net profit of $17.325 million, up from $4.335 million in fiscal 2009.
Revenue in the year to March was a record $791.8 million, and the company says it has an all time high $828 million of work on its books for this year and next.
Net profit from continuing operations was $18.129 million, up from $5.571 million in 2009.
Earnings before interest and tax (EBIT) from continuing operations for the year ended March 31 were $30.237 million, up 96% on 2009.
The company didn’t declare a dividend in 2009 or in 2010.
Norfolk managing director, Mr Glenn Wallace, said the integrated engineering company had favourable long-term growth opportunities, particularly in the infrastructure and resources sectors.
"With record revenues in 2010 and a strong order book going into the 2011 financial year, Norfolk is in a stable position for future expansion," Mr Wallace said in a statement.
"Following prudent management over the last 12 to 18 months, Norfolk is in a strong position to achieve growth, whilst being mindful of the current macro-economic uncertainty."
