The construction arm of the business reported a net loss of $60.7 million, while mining operations enjoyed a record $533.3m in revenue, a 26% increase year-on-year, and a 70% jump in net profit at $23.1m.

The loss followed major write-downs at its Hope Downs 4, Solomon and Urban Superway projects.

The mining results represent a 70% increase on the previous corresponding period, with Macmahon confident its future growth strategy will pay off.

Shareholders voted yesterday in favour of the sale of Macmahon’s construction business to majority shareholder Leighton Holdings, clearing the way for the company to build on its previous mining success.

Leighton chief executive officer Hamish Tyrwhitt said the Macmahon construction contracts would help expand its presence in the Northern Territory.

“Following the shareholder approval and with the consent of Macmahon clients, which is progressing well, we are planning a seamless transition of the projects,” he said.

Macmahon chief executive officer Ross Carroll described the overall financial result as extremely disappointing, but said the performance of the mining business was a strong endorsement of the new strategy to focus on becoming a dedicated full service mining contractor.

“With a record order book, strong balance sheet and low gearing, we are in a good position to grow the areas of the business that are already performing well,” he said.

“The recent growth of our mining business in a time of challenging market conditions highlights its sustainability and holds the company in good stead for its mining-focused future.”

Macmahon said it expected a net loss after tax of $10m to $20m for the full financial year after including the impact of the sale and wind down of its construction operations.

The profit before tax guidance for the ongoing mining business is expected to be in excess of $85m.

Patersons Securities analyst Rob Brierley said the second half of the financial year would be a better indicator of Macmahon’s future than this reporting period.

“The second-half result will be more reflective of the performance of Macmahon’s continuing business post the sale of the construction division, with only a minor legacy loss expected during the period,” he said.

Macmahon has an order book of roughly $3.6 billion, including the $1.8b Christmas Creek expansion contract announced January 22.

In addition to existing operations, the company plans to establish a new office in Ghana to pursue opportunities in Africa.

Macmahon shares were down 1.5% to 33.5c.