Civmec

Civmec release 1QFY14 net profit of $8.0m (-8%) and revenue at $70.9m (-49%). The lower revenue was due the timing in recognising revenue as a consequence of a number of key contracts nearing completion while simultaneously new contracts are getting underway. Bottom-line was however aided by stronger gross margins which increased by 76.5% to 23.3% (1Q13: 13.2%). The decrease in the cost of sales for the quarter was directly impacted by several efficiency and productivity improvements gained throughout the projects. Positive outcomes on close out of variations also contributed to the increase in gross margin.