Transfield Services has rebounded to a full-year profit after a year of investment in business transformation, and says it's targeting 5 to 6 per cent profit growth in 2010-11.
The company on Thursday reported an annual net profit of $73.045 million in the 12 months to June 30.
That followed a loss of $55.01 million in the previous year.
Transfield shares were down 6 cents, or 1.9 per cent, in recent trade to $3.12.
Group revenue declined 6.2 per cent to $4.1 billion, as a stronger Australian dollar reduced contributions from overseas operations, particularly North America.
The company says it's targeting mid-single digit growth in net profit for the 2010-11 financial year, excluding any restructuring or cost reduction initiatives.
Chief executive Peter Goode said the result reflected a disciplined approach to pursuing growth and broadening capabilities in a tough business environment.
"Despite tough conditions, the business has delivered its guidance," he said.
"The company achieved its best ever operating cash result at $225 million, compared to $174 million last year.
"Our balance sheet remains strong and this positions the business strongly for growth."
Mr Goode said the group’s investment in business transformation, removing redundancy and driving discipline across the business would continue into 2011.
‘‘We continue to be committed to streamlining our operational structure with an increasing focus on business development,’’ he said.
Mr Goode said the ongoing business efficiency improvements and lower cost base of the US business would drive growth in 2010-11.
He also expected the return of investment to key resource sectors and increased infrastructure spending.
‘‘We are also encouraged by our pipeline of opportunities currently totalling $29 billion.’’
In Australia and New Zealand revenue increased, underpinned by strong results in property and facilities management, rail, power and water.New contract wins also provided cautious optimism about the future, Mr Goode said.
Transfield has declared a final dividend of nine cents per share, bringing the total dividend for the year to 14 cents per share.
AAP