Commercial property and infrastructure services company United Group has reported net profit after tax of $78.7 million for the year ending June 30, 2006 – an increase of 66% over $47.5 million in 2005.
Over the 12 months, sales revenue was up 78% from $1.3 billion to $2.2 billion.
United’s managing director Richard Leupen said the key driver for the strong performance was organic growth in the underlying United Group businesses and the two major acquisitions are on track with expectations and are adding to revenue and profit.
“We are encouraged by United Group’s performance for the year, particularly as organic growth in our operating businesses has again been delivering more than half of the growth. We successfully integrated two major acquisitions, PREMAS and ALSTOM, which also contributed to revenue and earnings.
“Our sector focus strategy is delivering results. Sales revenue of $2.2 billion is encouraging, the first time in United Group’s history that revenue has exceeded $2 billion. We continue to invest heavily in business development which has led to a record level of new project wins and high retention rates of existing contracts. Underlying growth and acquisitions have resulted in our order book increasing by 59% to $4.3 billion,” he added.
During the year, United made a $163 million acquisition of United States based property services business Equis Corporation.
Leupen said there is scope to expand the Corporate Real Estate operations of Equis in the US and other markets.
“To fund this acquisition, we completed a $121 million institutional placement, bringing new shareholders to the United Group, and a $31 million Share Purchase Plan,”
Leupen said United Group enters 2007 in excellent shape, backed up by a strong delivery team and a large percentage of revenue already locked in.
“Infrastructure spending is increasing in all markets, and international expansion will deliver continued growth, as will stable earnings in the property, power, water and rail sectors. It is this diversity that underpins United Group’s future.
“…Again in 2007, we expect to exceed our long term goal of increasing earnings and enhancing shareholder value,” Leupen concluded.
The directors declared a fully franked final dividend of 24 cents per share, taking total dividends for the year to 44 cents – an increase of 47% over 30 cents in 2005.
By Adam Parsons