A listed company linked to Tasmanian magnate Dale Elphinstone has taken another big step forward in its recovery from a difficult period.
Melbourne-headquartered engineering services company Engenco Limited reported a 112 per cent increase in net profit after tax to $18 million for 2017-18.
Revenue was up 22 per cent to $157.3 million.
Chairman Vince De Santis, another North-West Tasmanian businessman, said the balance sheet now gave Engenco a strong foundation for sustainable growth.
“During the year, we repaid $4 million in borrowings, in addition to investment in our branch networks and capabilities, and we have begun the new financial year with a positive net cash balance of $8.3 million,” he said.
Engenco services companies in the resources, rail, transport, defence, maritime and power industries.
It struggled several years ago.
That led to losses, job cuts and a major restructure.
It said 2017-18 was its third successive year of increased profitability and positive net operating cashflow.
It said that reflected the success of its strategy to expand its range of high-quality products while keeping focus on its core business and strengthening relationships with “tier one” customers.
Managing director Kevin Pallas said the company achieved revenue growth in every business unit in 2017-18, with fixed costs under control and significant efficiency gains.
The company said the sectors in which it operated were generally experiencing growth, but signs in the broader economy suggested the need for some caution.
“There is growing momentum on a number of fronts and, subject to those ever present influences which remain beyond the company’s control, organic growth and ongoing efficiency improvements are expected to result in further increases in revenue and earnings in financial year 2019,” it said.
Mr Elphinstone is a former Engenco chairman and remains on the company’s board.
He was instrumental in the company’s recovery.