The first half of 2014 financial year results for the contractor saw earnings before interest and tax rise from $1.6 million to $7.3 million, with sales revenue down slightly to $49.7 million.

The company ended the half with cash flow from operations up from $400,000 to $16.4 million, with net cash sitting at $45 million.

“It is pleasing that despite difficult trading conditions in our sector and the impact on revenue caused by project commencement timing, the company has succeeded in producing a solid operational and financial performance in HY2014,” GR managing director Geoff Jones said.

“We have achieved significant improvements in our cash flow, earnings and net profit over the same period last year despite the lower revenue, largely as a result of diligent contract management and cost control.

“Our assessment of work on hand indicates improved revenues and consistent financial outcomes for the balance of FY2014.”

Taking stock of its growth strategy, GR said it continued to pursue opportunities in west Africa and Southeast Asia.

In December it also announced the acquisition of Production Solutions, a contractor servicing the upstream oil and gas sector in Australia and Southeast Asia.

The company said the move would help it gain access to the local coal seam gas sector.

GR said it had a solid order book for the rest of the year and expected improved revenue in the second half.

The last six months saw the company complete design and construction of the Andy Well gold project for Doray Minerals and the Whyalla magnetite expansion project in South Australia.

Work also continued at Wolf Minerals’ Hemerdon tungsten and tin project in England.

Elsewhere the company was appointed preferred contractor at the Keysbrook mineral sands project in Western Australia.

It said timing of the $55 million contract would have a significant impact on the next six months earnings.

GR Engineering shares were up 10.6% to 68c today.