The MAC yesterday announced a record net profit after tax of $A23.8 million, up 29.7% from the 2008 financial year result of $18.3 million.
Revenue rose 33.5% to $107.1 million, while earnings before interest, taxes, depreciation and amortisation jumped 33.4% to $47.9 million.
The record results come even after Rio Tinto Alcan terminated a contract in December for a 300-room accommodation village near Gladstone in Queensland, which was to house staff working on the Yarwun 2 project.
The MAC chief executive officer Mark Maloney said the strong results were a testament to the company’s business model.
“And we are confident about the medium to long-term prospects for our business, particularly as we are already seeing signs of a recovery in the resources industry,” he said.
Cash flow from operating activities was $29.3 million and the company lowered its gearing ratio to 27% during the year, down from 35% in the previous financial year.
The MAC reported that its linen division was now profitable following the closure of a depot and investment in new equipment.
Wet weather caused delays in the installation of new rooms at Coppabella and Middlemount, while BHP Billiton Mitsubishi Coal Alliance scaled back activities at Norwich Park and Saraji, affecting occupancy levels at the Dysart Village.
Maloney said the company expected Dysart to remain under-utilised for some months yet.
During the year, 811 new rooms were installed, with the majority being at Coppabella, Dysart and Middlemount.
At Coppabella, the company also installed a fully equipped gymnasium and swimming centre.
The MAC currently has 4973 rooms, up from 4245 in the 2008 financial year.
During the year, the company was appointed as the preferred tenderer for the establishment of a 500-room village for BHP’s massive Olympic Dam mine at Roxby Downs.
The MAC had been negotiating with Landcorp for the grant of a lease over a site at Gap Ridge in the Pilbara town of Karratha, but said a commercial agreement could not be reached and negotiations had now been terminated.
Maloney said the company remained cautious on the outlook for the resources industry but had no plans to alter its strategic direction.
“We remain interested in prospective business acquisitions but only if these have direct relevance to our business strategy of ‘develop, own and operate’ accommodation services to the resources industry,” he said.
“Additionally, we have continued to identify and acquire land in regions which we believe will benefit from our style of accommodation facility.”
