By Dan Stratful (AFA)
Thursday 30th August 2012
|Text too small?|
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).
No comments yet
Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria
Talisman Quarterly Activities Report to 30 June 2020
General Capital gives notice of Annual Meeting
Scales Corporation - Business Update
Fonterra Co-operative Group Global Dairy Update
Fonterra revises its 2019/20 and 2020/21 forecast Farmgate Milk Price ranges
Briscoe Group Limited Market update: 2nd Quarter Sales to 26 July 2020
thl market update - A frame work for 2021
Me Today - Outcome Of Share Purchase Plan Offer