By Dan Stratful (AFA)
RCR Tomlinson (ASX: RCR) has reported a buoyant financial year in the year to 30 June 2012 (FY12) and it reported 2 profit upgrades in the lead up to the release of its FY12 results.
Its first profit upgrade in June 2012 informed the market that profit would be 15% higher than FY11, while this was upgraded again in July 2012 to a 40% profit increase.
RCR pinned the result on increased project activity in the Resources business and continued strong demand for materials handling equipment in the Mining business both of which helped RCR report record first-half revenues of $333 million in the 6 months ending 31 December 2011. The momentum of the 1H has obviously carried over into the remainder of the year as record FY12 revenue of $808.7 million was reported an increase of 33% as net profit rose 40% to $27.3 million.
RCR experienced a solid operating performance which saw EBIT margins of 5% and it finished the year in good financial shape with no debt, a cash balance of $45.2 million and a record order book which doubled to $618 million at the close of the year.
RCR also finished the year with a 3 year total shareholder return compound annual growth rate (CAGR) of 47%pa which saw it outperform the market and many of its peers.
Earnings per share (EPS) rose 38% to 20.51 cents which leaves RCR trading on a FY12 PE Ratio of just 8.4x.
More growth is expected in FY13 and RCR reports that it's mid and long-term growth prospects remain positive with a recent new contract win with Fortesque Metals. Analysts' expect a $31.5 million profit in FY13 and a $33 million profit in FY14 and the consensus recommendation is ‘strong buy'.
About RCR Tomlinson:
RCR is a multi-disciplined engineering company providing integrated solutions to the Mining, Energy, Resources and Power sectors. RCR's origins stretch back over 100 years and it listed on the ASX in 1996 after a merger between listed companies RCR Engineering and Centurion Industries. Today RCR has four operating business units - RCR Mining, RCR Energy, RCR Resources and RCR Power. With its head office in Perth, RCR services its clients in Australia, New Zealand and Malaysia.
Status: GROWTH BUY
RCR's shares today traded at $1.73
In accordance with the Financial Advisers Act 2008 ("the Act") Sharechat is "Class Advice" and any advice or recommendations contained on this webpage is not "Personalised Advice" as defined by the Act. This means Sharechat does not take into account an investor's particular financial position, financial needs, financial goals, risk profile or asset allocation. Investor's who require "Personalised Advice" should contact an Authorised Financial Adviser (AFA).
DISCLAIMER: To the extent that any of the content above constitutes advice, it is general advice that has been prepared without reference to investor’s objectives, financial situation or needs. Before acting on any advice, investors should consider the appropriateness of the advice and IRG recommend that investors should obtain appropriate financial, legal and taxation advice before making any financial investment decision. The report is based on information compiled from public information and private research. IRG have completed the report on a best endeavours basis and do not accept any liability of loss or damage. IRG suggest that clients use this as part of a decision making process and check key data before making any investment decisions.
Employees may have an interest in the securities discussed in this report.
Comments from our readers
No comments yet
Add your comment:
NZ dollar holds near 5-year high vs. Australian dollar on interest rate paths
Wellington Electricity settles with regulator over price path breach
Indicative bids on Transpacific Industries' NZ unit close today
Delegat's sees 10 percent lift in 2014 profit, warns strong currency may hit bottom line
Infratil on-market buyback completed at $2.38 a share, or $59 million
Forest owners easier target on health, safety lapses under new regime, MBIE’s Smol says
SkyCity earnings to get kicker from Adelaide redevelopment in 2017, brokerage says
Postie Plus plans to sell SchoolTex unit for $9 million to reduce debt, invest in core business
SFO passes on more than 90 percent of complaints, says function isn't compromised by lean budget
Taxpayers may be called on for more help in completing UFB network