Mining services and civil engineering firm Macmahon expects to double its after tax profits in the 2010 financial year, it was announced at the company’s annual general meeting on Friday.
Based on its financial performance to date, the company is confident of achieving an after tax profit of $34 million, up from the 2009 profit result of $17 million.
Macmahon chief executive officer Nick Bowen attributed the increased numbers to a significant jump in tendering activity in recent months as the world economy continues to recover.
“We are starting to see a real improvement in the resources sector, with strong demand for commodities and new projects being considered,” he told shareholders at the meeting.
“The increase in tendering activity is giving us some confidence of the capacity to improve on this forecast, subject to the timing of new work.
“Additionally, strong cash flow and low debt levels, coupled with higher tendering activity, see us well placed to deliver further growth in 2011.”
Bowen said that Macmahon has some $800 million in new and extended contracts that he expects will be awarded in the next three months.
“In addition to our work in Australia, the company has been looking into new opportunities overseas, which we see as a way to further grow and diversify our business.”