Still no payout for GCS investors

Global Construction Services has continued to withhold declaring a dividend despite reporting a 7.1 per cent rise in net profit to $8.7 million for the 2015 financial year, but says it hopes to deliver a payout next year.

GCS posted a 6 per cent slide in revenue to $150.5 million for the year, with debt reduced by $32.7 million.

It declared no dividend for the second year in a row, having last declared a 2 cents per share payout in FY13.

The company’s profit result was driven by improved margins in the residential sector, with momentum increasing in the commercial space.

“FY15 has been a year of significant change and improvement for the business, having restructured its main operating divisions, implemented some material cost saving initiatives across the broader group, coupled with the strategic placement to Brookfield Capital Partners and successfully completing the refinancing of its debt facilities,” managing director Enzo Gullotti said.

“Activity levels in the residential sector are still at an all-time high, and we envisage this will continue throughout FY16.

“Tendering activity remains robust and we are pleased to see a number of major new contracts being awarded to the main contractors in the commercial sector.”

GCS shares closed 4 per cent higher to 52 cents each.