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The company, which increased annual net profit after tax by 29% year on year to $14.664 million for 2012, had a strong order book and was ready to face the more challenging environment next year, managing director Tony Caruso said.
The contract order book for the 2012 financial year was maintained with no erosion or runoff of the existing contracted work and three major projects were extended or renegotiated, Caruso said.
“Over the past six months it has become increasingly apparent that the coal sector is facing a difficult trading environment as a result of rising costs, declining coal prices and a continued high Australian dollar,” he said.
“FY2013 is expected to be a low-growth environment with many coal mine operators focusing on cost efficiency across their operations. This presents Mastermyne with the opportunity to improve its business particularly in the area of costs and skills as it focuses on executing the order book in hand which is entirely linked to production at coking coal operations.”
With $250 million of revenue deliverable in FY13 from its existing order book, Mastermyne is well placed commencing the new financial year, it said.
Mastermyne is also tendering on a further $728 million in new business as coal companies look to consolidate their contractor relationships and focus on costs and production efficiency.
“The company remains committed to servicing and adding value to its existing customers and will focus on contract renewal over the next 12-18 months whilst continuing to pursue ongoing opportunities for growth,” it said.
The FY2012 result was led by Mastermyne’s Underground division but was well supported by a “very strong performance” from the Engineering division.
The Services division delivered a turnaround to be profitable in the second half of the year and is well placed with a solid pipeline of contracted work for FY2013, the company said.
Myne Start has seen the continued success of its training facilities with a second centre opened in Brisbane late in the financial year to service the ongoing demand for skills training.
Margins delivered in FY2012 were consistent with FY2011 and reflect continuing growth in contracting work as a percentage of overall revenues.
The company expects margins to be maintained at current levels for FY2013.
