Fyfe Engineering has posted a profit for the first time since 2014
ADELAIDE engineering firm Fyfe is back in the black and on the hunt for opportunities to grow its national footprint.
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ADELAIDE engineering firm Fyfe is back in the black and on the hunt for opportunities to grow its national footprint.
On the back of a 22 per cent increase in revenue, to $35.7 million, the company posted a $2.1 million profit last financial year after breaking even in the previous year.
A turnaround in oil and commodity prices has helped Fyfe find its feet again after it bore the brunt of a market rout that saw the oil price crash to less than $US27 a barrel in early 2016.
Fyfe managing director Mark Dayman said the company was on track to add another 15 per cent to its turnover this financial year, lifting it to more than $40 million.
“It’s no secret that the oil & gas area has done it pretty tough for a few years, and also the resources sector, but that's really turned around now,” he said.
“All sectors and all locations are going pretty well for us now, particularly infrastructure and energy and resources - there are a lot of infrastructure projects out there.
“In South Australia there are a lot of significant projects out and about - a number of solar farms and road projects, so things are happening.”
Fyfe operates in the energy, resources, infrastructure and property sectors, with services ranging from surveying to engineering, environmental and town planning.
Around 50 per cent of its annual revenue is currently generated in South Australia, with a similar proportion of its 240-strong workforce operating within the state.
By 2014, after riding a surge in oil & gas and commodity markets, the company was turning over $75 million a year.
However, revenue slipped to $51 million in 2015, and two years of significant losses followed.
With the oil price climbing back to close to $US70, and with commodity prices following a similar trend, Fyfe is buoyed again by the pipeline of resources projects.
On the back of the improved sentiment, Mr Dayman said the company was actively seeking opportunities to growth its national footprint, particularly across Western Australia, Victoria and Queensland.
“We had a five-year strategy and for the first two years, being 2017 and 2018, we termed it cautious emergence - making sure we made our way towards a strong financial position,” he said.
“From 2019 to 2021 we’re starting to look at growth opportunities, but measured growth. “We’re starting to look at M&A opportunities - either joining other companies or acquiring companies - there are a few irons in the fire but it’s pretty early days.”
Mr Dayman said major defence projects in South Australia were also providing opportunities for the firm’s local consulting arm.
“Defence is something every consultant in Adelaide would be looking at strongly,” he said.