Ausgroup says net profit attributable to equity holders for FY2010 decreased 89.2% to A$2.4 million ($2.9 million).

Revenue decreased to A$366.7 million for FY2010 from A$478.2 million in FY2009 due to lower activity in the first three quarters of FY2010 and client delays on certain projects.

Additionally, the strong Australian dollar against the US dollar and most Asian based currencies continues to impact the competitiveness in the Australian Fabrication and Manufacturing business.

Revenue for 4Q FY2010 increased by 4.3% to A$123.2 million due to the increased activity levels in the oil and gas and LNG sectors as well as the increased activity levels in the mineral resources sector in the Australian Major Projects segment.

The Integrated Services segment benefited from the acquisition of Modern Access Services (MAS), which contributed A$61.6 million to revenue.

The group’s gross profit declined from A$71.5 million in FY2009 to A$44.0 million in FY2010 with gross profit margin declining from 14.9% to 12.0%.This decrease is due to lower margins on projects post the global financial crisis and provision for an estimated loss on a Western Australian construction project.

Ausgroup says the longer term outlook for the group’s Western Australian markets — particularly in the oil and gas (LNG) and iron ore sectors — remains strong.

“Excluding impacts related to global market uncertainty, the group anticipates a steady build up in demand for its services from the second half FY2011 into the FY2012,” says the company.

As of July 31, the group has work in hand to the value of A$362 million.

The board has proposed a final cash dividend (tax exempt) of 0.64 cents per share.