Civmec, the construction and engineering services provider, saw its earnings surge to A$5.5 million ($5.4 million) for 4Q20 ended June, up 4,476.7% from its earnings of A$120,000 a year ago.

The spike was due to improved gross profits and reduced finance expenses.

This brings the company’s full-year earnings to A$17.6 million, up 189.5% from A$6.1 million last year.

Accordingly, earnings per share (EPS) for the quarter rose to 1.10 Australian cents from 0.02 Australian cents in the same period the year before.

EPS for FY20 stood at 3.51 Australian cents, compared to 1.21 Australian cents in FY19.

Revenue for 4Q20 grew 77.4% y-o-y to A$130.2 million due to the timing of projects, while gross profit increased by 192.4% y-o-y to A$15.7 million. Gross profit margins grew to 12.1% from the 7.3% the year before, due to the one-off impact of cost overruns on near completed engineering procurement construction (EPC) projects in 4Q19.

Other expenses increased 1449.1% y-o-y to A$4.3 million due to impairment losses provided for expected credit losses on loans of A$1.77 million to Civmec’s associate, and trade receivables of A$0.91 million.

Civmec also recognised a loss of A$1.6 million on asset valuation less than book value of the freehold land and buildings.

Revenue for FY20 fell 19.8% y-o-y to A$391.9 million, although gross profit grew by 74.9% y-o-y to A$44.7 million with an improved gross profit margin of 11.39% from 5.23% in FY19.

Other income for FY20 fell by 60.4% y-o-y to A$2.2 million due to proceeds from an insurance claim received and gain from deconsolidation of a subsidiary in the comparative period.

For 4Q, Civmec won new contracts and extensions totalling up to some A$260 million, increasing its order book to A$900 million as at end June.

The board has declared a first and final dividend of 1 Australian cent (0.98 Singapore cent) for the quarter, compared to the 0.7 Singapore cent declared in FY19.

As at end June, cash and cash equivalents stood at A$27.7 million.

Civmec says the Covid-19 pandemic has had no significant impact on the majority of its operations, and it has been proactive in implementing measures at its manufacturing and on-site facilities to prevent the spread of Covid-19.

Shares in Civmec closed 0.5 cent higher, or 1.3% up, at 39 cents on August 27 prior to the announcement.