Civmec has posted earnings of A$15.0 million ($15.4 million) for the 1HFY2021 ended December, 86.6% higher than earnings of A$8.1 million in the year before.

The higher earnings were due to strong growth in the group’s revenue and profits.

Revenue for the period surged 84% y-o-y to A$305.7 million mainly due to the commencement of new projects.

In line with the revenue growth, gross profit for 1HFY2021 increased 85.5% y-o-y to A$34.5 million.

Other income increased by 210.4% to A$1.8 million in 1HFY2021 due to insurance monies received for property damages due to severe weather conditions.

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Administrative expenses increased by 16.3% y-o-y to A$9.2 million mainly due to the increased employee benefits expenses, additional cleaning and security costs associated with Covid-19 control measures implemented during the period.

SEE: Civmec 4Q20 earnings surge to A$5.5 mil on improved gross profits and reduced finance expenses

Other expenses increased by 636.3% y-o-y to A$1.7 million in 1H2021; the majority of this is associated with writing off of a trade receivable after Altura was placed into receivership.

Earnings per share (EPS) for the period stood at 3 Australian cents on a fully diluted basis, from 1.61 Australian cents a year ago.

According to Civmec’s chairman, James Fitzgerald, “The first half of FY2021 continues the strong growth in revenue and profits seen in prior periods off the back of a growing order book.”

“Strong profits and cashflow, coupled with reduced capital requirements of the group has allowed us to declare our first interim dividend of 1.0 Australian cent, to be paid on March 26,” he says.

During the period the group announced several contract wins in all its sectors, which contributed to the group’s performance.

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Its order book, as at end-January, stood at $1.15 billion.

The group says the forward tendering outlook remains positive, particularly given its established local supply chains, which will enable it to continue to fully support the delivery of the group’s projects.

It adds that the Covid-19 pandemic has had no significant impact on the majority of the group’s operations, with some minor impact on the timing of certain maintenance contracts being undertaken.

Cash and cash equivalents as at Dec 31, 2020, stood at A$42.0 million.

Shares in Civmec closed 0.5 cent lower or 0.9% down at 57.5 cents on Feb 10.