Adelaide Brighton has rewarded shareholders after posting a record half-year profit
CEMENT and concrete maker Adelaide Brighton has delivered a record half-year profit ahead of a leadership transition later this year.
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CEMENT and concrete maker Adelaide Brighton has delivered a record half-year profit ahead of a leadership transition later this year.
The company will reward shareholders with a record half-year payout, including a 9c ordinary dividend and 4c special dividend, after posting a record half-year net profit of $84.5 million, up 18 per cent from the previous year.
Revenue was up 12 per cent to $807.2 million on the back of stronger residential, commercial and infrastructure markets on the eastern seaboard.
The half-year result is the last to be handed down by chief executive Martin Brydon, who is retiring later this year.
The company announced that chief financial officer Michael Kelly will also depart the company on November 3, with a formal search for his successor underway.
Mr Brydon said cost management had been key to the company’s improved performance, including last year’s five-year contract with Infigen Energy for the supply of renewable electricity across its South Australian operations.
“Our strategy to diversify geographically and vertically through a combination of acquisitions,
organic growth projects and business improvement, is delivering attractive revenue, earnings and cash flow growth and strong shareholder returns,” he said.
“Revenue, EBIT, net profit, cash flow and dividends were all first half records.
“Our balance sheet is in great shape and we’re pleased to declare fully franked half year dividends of 13 cents.”
Adelaide Brighton expects cement sales to improve in the second half on the back of major infrastructure projects in South Australia and on the east coast.
The company expects full-year underlying net profit after tax to reach $200 million to $210 million, after posting $85.2 million for the half-year.
An announcement regarding Mr Brydon’s replacement is expected in the fourth quarter.
Adelaide Brighton shares were down 28c, or 4.2 per cent, in early morning trade at $6.45.