MAC posts 29.7% profit rise as it eyes acquisitions
17/08/2009
smh.com.au
MAC Services Group says it is continuing to eye acquisitions after posting a 29.7 per cent jump in full-year profit.
Australia's largest publicly-traded mining accommodation and services company made a net profit of $23.77 million for the year ended June 30, up from $18.32 million a year previously.
Revenue grew by 33.5 per cent to $107.05 million in 2008/09.
It declared a fully-franked final dividend of 4.25 cents per share, taking the full-year payout to 8.5 cents a share, up from 7.5 cents in 2007-08.
Earnings before interest, tax, depreciation and amortisation increased by 33.4 per cent to $47.9 million, driving earnings per share up 16.6 per cent to 12.74 cents, on a diluted basis.
Chief executive Mark Maloney said MAC was confident about its prospects in the medium to long term, especially given signs of a recovery in the resources industry.
"We remain interested in prospective business acquisitions but only if these have direct relevance to our business strategy of `develop, own and operate' accommodation services to the resources industry," he said on Monday in a statement.
Mr Maloney said MAC has continued to identify and acquire land in regions which will benefit from its style of accommodation facility.
"The board has decided to maintain the current direction and there are no plans to alter our strategic direction which has stood us in good stead during what has proven to be a turbulent period."
MAC cut costs toward the end of 2008-09 after experiencing a slowdown in occupancy levels.
As well, rain-induced delays in the installation of new rooms at its Coppabella and Middlemount facilities pulled back revenue, along with BHP Billiton's decision to reduce activities in North Queensland which lowered occupation numbers at MAC's Dysart Village facility in May and June.
But additional revenue streams from the roll-out of taverns and retail shops and new facilities produced a revenue buffer, the company said.
During calendar 2008, MAC was appointed as the preferred tenderer for BHP Billiton's Olympic Dam 500-room accommodation facility at Roxby Downs.
But the final terms of the contract are still unclear, MAC said.
As well, MAC's recent negotiation with Landcorp over a lease for a site at Gap Ridge at Karratha, Western Australia, have been terminated.
"We will continue to pursue other opportunities in the region,'' MAC said.
MAC finished 2008-09 with 4973 rooms, up from 4245 the previous year.
AAP
Back to news