Protech interim results August 08
Mon, 03 Nov 2008
Group revenue increased by 78% to R344.2 million (R193.5 million). Operating profit at R86.6 million was 42% higher (R60.8 million) than the comparative prior year due to increased project activity. Earnings attributable to ordinary shareholders rose to R53 million (R40.9 million). In addition, headline earnings increased by 31% to 14.8cps (11.3cps). Dividend No dividend has been declared. Prospects Protech has current contracts in progress of R840 million. R633 million will be completed over the next 18 months. Protech is well positioned to continue to benefit from the estimated R600 billion government infrastructure spend over the next three years as committed to in minister Trevor Manuel's medium-term budget. The line of sight of future projects, over and above Eskom-related developments, stretches well beyond the next three years and indicates sustained activity for the industry. The worldwide energy crises will also place increasing demands on fossil fuels. Protech's involvement in the coal mining sector will therefore continue to produce a profitable revenue stream and already comprises a solid portion of the forward order book. The proven ability of the group to anticipate market shifts and to respond swiftly to these shifts ensures that the group will be able to sustain its level of activity and grow profits through times of change in its markets. The group expects further strong growth in the second half of 2009, as well as sustained growth in the long term.
