Monadelphous shares advance as first-half profit tops forecasts
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More news: Monadelphous shares gained more than 7% after the engineering group reported a surge in first-half profit and declared an improved interim dividend.
Monadelphous shares were up 7.1% to $16.70 at 12:10pm AEDT, extending gains of around 20% over the last 12 months.
Jarden analysts noted that underlying net profit after tax came in 4% ahead of market estimates. They also expect consensus upgrades to full-year core NPAT forecasts of between 3% to 4%, based on the company's improved margin guidance relative to estimates.
Monadelphous posts 40% surge in first-half profit, lifts dividend
The news: Engineering firm Monadelphous Group has reported a 41.3% rise in first-half net profit and hiked its interim dividend.
The numbers: Net profit for the six months to December jumped to $42.5 million, up from $30.1 million a year ago. The result included a $7 million after-tax boost from non-operating items compared to the prior period. Revenue rose 2% to $1.02 billion. The company will pay a fully franked interim dividend of 33 cents per share, up from 25 cents a year ago.
The context: The Perth-based Monadelphous’ strong half-year performance was led by a small revenue dip in its Maintenance & Industrial Services division, while engineering construction revenue jumped by a third. Managing Director Zoran Bebic said the company has secured $1.7 billion in new contracts since July.
“Resources and energy demand is expected to remain strong over the long term, underpinned by sustained economic growth and increasing investment in decarbonisation activities,” he said.
The company is now forecasting high single-digit revenue growth with improved operating margins for the full fiscal year.
The source: ASX announcement
