Construction group CIMIC blitzed its half year profits

Construction activity in western Sydney. Picture: Getty Images

Construction and contract engineering group CIMIC, the former Leighton, today posted a 22% lift in half year profits to $322.9 million and announced a 25% increase in dividends.

The result, on the back of a 28% rise in revenue to $6.3 billion, follows the company’s strategy to diversify its income streams.

The company also has net cash of $608 million, a $330 million increase between March and the end of June.

CIMIC, controlled by Spanish group ACS, confirmed its full year net profit after tax guidance of between $640 million to $700 million.

Group executive chairman Marcelino Fernández Verdes says the “compelling” numbers are a testament to the transformation of the company’s business model.

“Through continually evolving how we deliver projects, we are achieving favourable outcomes for clients which improves the position of our Group to win further work,” he says.

CIMIC CEO Adolfo Valderas says the company has work in hand of $35.2 billion, or about two years’ revenue.

The company is tendering for, or shortlisted on, several major projects including the Sydney Central train station, part of the Sydney Metro City and Southwest Project-Stage 2 Sydney Metro development, selected projects under the Western Sydney roads upgrade program and the deep tunnel sewerage system in Singapore.

“We are in an ideal position to build on our strategy of providing clients with end-to-end solutions — from financing to engineering, construction, mining, operations and maintenance,” he says.

The company declared a fully franked dividend of 60 cents, up from 48 cents.

The half year results in detail:

Source: CIMIC