Civmec

Civmec: 3QFY14 net profit climbed 8.3% y/y to $9.2m, as revenue expanded 34.4% to $117m, driven by momentum gained from existing contracts. Gross margin slumped 6.8ppts to 13.7%, due to the increase in costs associated with the commencement of projects. Mgt is positive on outlook, with the group actively bidding for new construction projects, as well as maintenance services and offshore logistics in Western Australia and Northern Territory. Civmec sees a levelling in mining activity, although investment remains at a very high level. Order book firm at $323m.