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Macmahon Holdings returns to profitability

Published: 15:00 20 Aug 2014 AEST

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Macmahon Holdings (ASX:MAH) is expected to trade higher after releasing strong full year results for the year ending 30 June 2014.
 
Revenue for the year totalled $1 billion, resulting in a net profit after tax of $30.4 million, whilst gearing remained healthy at 12.9%, with repayment of $50 million in debt.

The company’s surface and underground mining services operations performed well during the year.

Operations at BHP Billiton’s (ASX:BHP) Olympic Dam Mine continued to expand, with a further 4-year contract granted to provide raise drilling services on site.  
 
Internationally, Macmahon’s operations performed in line with expectations, providing a base for future growth.

Macmahon generated operating cash flows from mining operations of $125.2 million, an increase of 6% on the previous corresponding period, and boasts an order book of $2.6 billion.

This level of performance looks set to continue with expected 2015 revenue in the range of $0.75 to $1 billion.

The company is capitalised at around $140 million.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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