Diploma Group (ASX: DGX), a leading Western Australian construction company, has now confirmed the formal award of a contract to undertake the construction of 19 Ogilvie Road Mount Pleasant for $17 million.
The contract is for the construction of a development of 34 residences and office space in Mount Pleasant for new client Norup+Wilson.
The development consists of two basement levels of car park, two commercial levels of office and 7 levels of residences with. Forward works have commenced on site with practical completion expected in June 2015.
This deal is part of $66 million in contract wins last month, which also included a $38 million appointment to construct 109 apartments, and an $11 million Quest Serviced Apartment development.
Diploma's construction portfolio has the potential to rapidly build in the near-term, with over $100 million in contracts expected to be announced in the coming weeks.
This has the potential to build on the strong first half results for the six months ending December 2013, with EBIT of $3.3 million on revenue of $111.6 million - which is up 34% on the previous period.
Proactive Investors retains its share price target of $0.047 - $0.054.
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