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).
Daily ShareChat articles report how the main experts in the market might view a certain share and we provide this commentary as a useful resource for investors. Content on this site does not in any way constitute a recommendation to buy, hold or sell any particular share. Investors should always seek professional advice before making any investment decisions.
Comments from our readers
No comments yet
Add your comment:
NZ dollar faces more downside as improving US economy spurs greenback supporters
NZ Sugar Company boosts profits on higher exports and lower costs from Chelsea factory
Greymouth Petroleum shucks off disaffected shareholder
Lance Wiggs's Punakaiki Fund mulls $50 million IPO to invest in high-growth companies
Ecoya ekes out small annual profit, EBITDA up 26%
Snakk raises $6.5M in over-subscribed issue
NZ trade surplus misses expectations
SFO charges seven people over mortgage fraud
While you were sleeping Cautious calm returns