Engineering firm Civmec (ASX:CVL) reports a 24.4% spike in revenue and an 11.6% increase in profits for the 2024 financial year compared to the prior financial year.
FY24 revenue climbed to $1.03 billion, up from $830.9 million in FY23, while net profit after tax came in at $64.4 million versus $57.7 million last year.
Earnings before interest, taxes, depreciation and amortisation rose 10.7% to $120.8 million, with earnings per share growing 11.2% to $0.127.
However, cash generated from operations slid 21.1% year-over-year to $96.9 million and the company’s forward order book is also down 17.9% to $853.4 million.
This resulted in a year-end net cash position of $24.5 million, which is 76.3% higher than FY23.
Civmec notes that “opportunities remain plentiful” for the company to keep replenishing its order book.
Specifically, the group has continued to grow its engineering design capability given the strong demand for original equipment manufacturer (OEM) material handling machines, for both new facilities and replacement of aging assets.
On a conservative analysis of the OEM materials handling market, there is demand for more than 30 machines over the next 10 years in Australia.
Chairman James Fitzgerald says the continued strong performance has allowed Civmec to propose a final dividend of $0.035.
This takes total dividends payable for the year to $0.06, a 20% increase on FY23.
Civmec shareholders recently approved the company’s proposed relocation of its parent entity to Australia from Singapore. This was due to the company’s operations and workforce being entirely based in Australia.
“The change in domicile of the group will broaden the future opportunities that will align with Civmec’s strategic growth plans,” Fitzgerald says.
As part of the company’s plan to expand its Pilbara-focused maintenance services, a new maintenance facility in Port Hedland is now completed and operational.
Civmec has also purchased an established workshop in Gladstone, Central Queensland next to land the company already owns to fast track its goal of establishing a permanent base of operations in the region.
The company has already moved into the newly acquired facility.
Civmec is an integrated, multi-disciplinary construction and engineering services provider to the energy, resources, infrastructure, marine and defence sectors.
Write to Angela East at Mining.com.au
Images: Civmec
