Skilled Engineering Ltd Posts Strong Annual Profit, Sees Further Growth in 2004/05

Strategic Insights -

Sydney-based Skilled Engineering Ltd has announced a strong annual net profit of $A16.4 million ($US11.53 million) for the year to June 30, 2004, marking a slight increase from the previous year's net profit of $A16.1 million ($US11.32 million). The company's revenue reached $A736 million ($US517.3 million), a 12% increase. Despite a tough market, Skilled Engineering's managing director and chief executive, Greg Hargrave, remains optimistic about the company's future growth, expecting earnings to rise by between five and 10% in 2004/05.

Key Takeaways:

  • Skilled Engineering Ltd reported a net profit of $A16.4 million ($US11.53 million) for the year to June 30, 2004, a slight increase from the previous year's net profit of $A16.1 million ($US11.32 million).
  • Revenue reached $A736 million ($US517.3 million), a 12% increase.
  • The company's earnings before interest, tax, depreciation, and amortisation (EBITA) rose to $A36.4 million ($US25.58 million), up from $A31.3 million ($US22.0 million) in the previous year.
  • Skilled Engineering has also divested Skilled Communication Services Ltd for $A10 ($US7.03)-$A13 million ($US9.14 million), and received an offer for its power services business, with negotiations ongoing.
  • The company plans to take advantage of its strength in the managed labour market and develop its business in the customer contact and call centre market.
  • Managing Director Greg Hargrave expects earnings to continue growing in 2004/05 with a 5-10% increase.

Statistics:

  • Skilled Engineering Ltd's net profit for the year to June 30, 2004: $A16.4 million ($US11.53 million)
  • Revenue for the year to June 30, 2004: $A736 million ($US517.3 million)
  • Increase in revenue: 12%
  • Earnings before interest, tax, depreciation, and amortisation (EBITA) for the year to June 30, 2004: $A36.4 million ($US25.58 million)
  • EBITA for the previous year: $A31.3 million ($US22.0 million)

Sources:

Asia Pulse - Skilled Engineering Ltd (ASX:SKE) Aug 25, 2004