LEIGHTON has announced a 63% increase in operating profit after tax to $450 million for the year ended June 30 2007 and chief executive Wal King has forecast strong results for the FY2008.
King the strong profit result for the year was driven by the Leighton Group’s diversity and momentum.
“The group’s outstanding result reflected strong contributions from a number of large construction projects in
“Total revenue, including joint ventures, was up 19% to $11.9 billion ($10.0 billion last year) while revenue from joint ventures increased by 24% to $1.9 billion. Principal revenue sources were engineering and infrastructure $4.9 billion (up 16%), mining and resources $3.4 billion (up 30%), building and property $1.7 billion (down 7%), and services $1.9 billion (up 39%),” he added.
At the same time, Leighton’s work in hand has increased to a record $21.1 billion compared with $16.0 billion last year.
King said the outlook for the group remains very strong for all major markets, which are continuing to provide a good level of opportunities in construction, mining and services.
“The non-residential property market is forecast to peak in terms of activity levels in 2007/08 after reaching an all time high in the last year. Leighton Properties’ portfolio of developments and a number of social infrastructure projects, including new hospitals should maintain the Group’s level of building work.
“The balance sheet remains very strong with total assets of $4.7 billion and net cash of $669m. This strength will continue to be used to pursue growth opportunities including acquisitons to further diversify the business,” he said.
Leighton’s return on shareholders’ funds averaged 36.7% for the year compared 27.7% last year. A final dividend of 65 cents per share, franked to 50%, was announced bringing the full year ordinary dividend to a total 110 cents per share — up 67% from 66 cents per share last year.
“The group’s work in hand provides great momentum and revenue for the full year is forecast to be approximately $13.5 billion. This momentum means that we expect our 2008 profit to be up by at least 20% on this year’s record result of $450m,” King concluded.
Despite the good news, Leighton closed $2 lower to finish at $40.65.
Australian Property Journal
