Monadelphous shares jump after full-year profit lift
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Monadelphous jumped nearly 9% to $12.88 after the engineering company lifted its full-year profit by 16% and dividends by a third and said it expects the strong flow of new contracts and extensions to continue.
Jarden analysts maintained their 'overweight' rating and $13.80 price target on the stock with overall results in line and engineering and construction segment performing ahead of expectations.
However, they flagged downside risks ahead including cancellation of contracts in the lithium sector, higher labour costs and weather disruptions.
Monadelphous lifts full-year profit, dividend amid strong order flow
The news: Engineering company Monadelphous Group has lifted its full-year profit and dividends on the back of a continued strong flow of new contracts and extensions.
The numbers: Net profit for the year to 30 June, 2024, rose 16% to $62.2 million, better than analyst expectations of $61.8 million. Revenue for the year was up 17% to $2.02 billion.
It will pay a fully-franked final dividend of 33 cents a share, up from 25 cents a year ago.
The context: The Perth-based Monadelphous said its strong performance reflected continued strong demand for maintenance services and higher levels of activity in the engineering construction sector.
The company secured more than $3 billion in new contracts and extensions during the year. The company said it had a cash balance of $225.9 million, despite the acquisition of Perth-based structural concrete business Melchor Contracting.
What they said: “Prospects remain positive in resources and energy, with Australian iron ore miners anticipated to continue investing, several new gas construction projects progressing, decarbonisation projects making up an increasing share of capital expenditure and the pipeline of renewable energy opportunities expanding,” managing director Zoran Bebic said.
The source: ASX announcement
