Adelaide Brighton posts record half year profit

Australian-based buildings material maker Adelaide Brighton has posted statutory net profit after tax of $82.6 million for the six months to 30 June 2015.

An increase of 61.3 per cent over the previous corresponding period, the result was a record for the company. Revenue for the period was $678.1 million

The company said in a statement the improved result was due to higher cement and lime volumes, improved prices, proceeds from property transactions and the benefits of the 2014 acquisitions in South Australia and north Queensland.

In addition, demand growth from improved residential construction activity was a feature of the half.

Chief Executive Officer of Adelaide Brighton, Mr Martin Brydon, said: “We are very pleased to deliver another record half year result which reflects improving construction activity across our business, an increase in lime sales, our 2014 acquisitions and several property transactions.

“Housing activity is at healthy levels on both the east and west coast of the country and this is augmenting the demand for our products from major infrastructure and resources projects.

“Excluding property transactions, margins grew in cement, lime, concrete and aggregates, supported by higher volumes, rising prices and cost reduction initiatives. This more than offset a decline in joint venture operations largely due to margin pressure in cement distribution in Victoria.”

Adelaide Brighton said it would make a one-off capital return of 4 cents a share to investors, on top of an interim dividend worth 8 cents a share.

Image: Adelaide Now