Monadelphous lifts first-half profit, dividend

The news: Engineering company Monadelphous Group has reported a lift in half-year profit and improved its dividend on the back of increased orders.

The numbers: Net profit for the six months to December 2023 rose 3.2% to $30.1 million, while revenue was up 11.9% to $1 billion. It will pay a fully-franked interim dividend of 25 cents a share, up from 24 cents a year ago.

The context: The Perth-based Monadelphous has secured strong order flows from resources and energy companies as demand for commodities remains strong, with new orders and contract extensions totalling $1.8 billion over the half year.

The company said it had a record cash balance of $263 million, despite the acquisition of Perth-based structural concrete business Melchor Contracting. It is now forecasting revenue growth of around 10% for the full fiscal year.