Ertech chair Gavin Miller says he is heartened by the firm’s strong operational profit and overall growth.
Ertech chair Gavin Miller says he is heartened by the firm’s strong operational profit and overall growth.
The Wangara-based civil and electrical construction company’s revenue rose by 30.8 per cent during the 2024 financial year from $320 million to $418.9 million.
“We’re project-based, so it really is about our project portfolio,” Mr Miller told Business News.
“Over the course of the year, our major projects if you like are the Spoilbank Marina land-based works in Port Hedland – we have ongoing work at Barrow Island with Chevron which is quite significant and we are doing a couple of major road transport projects in New South Wales, Heathcote Road and Coxs River Road.
“So I guess our revenue was spread across a number of different segments and states. But all in all, the growth came out of the range of projects we had.”
Ertech’s gross group profit rose by 40.1 per cent to $46.6 million, although its overall profit for the 2024 financial year dipped from $32.3 million to $15.7 million – primarily due to a reduction in the company’s gain on revaluation of financial assets at fair value from $35.9 million to $4.7 million.
“Ertech holds an investment of just under 19 per cent in Duratec Australia, which is an ASX-listed company,” Mr Miller said.
“In FY23, the value of that investment went up by $36 million. In FY24, the value of that investment went up by $4.7 million.
“So the significant difference is in fact the different increase in values in that Duratec investment over those two financial years.
“What we tend to do is back that out when we look at our operational profit. When you take out that increase in Duratec value, our operational profit in FY23 was just under $10 million and FY24 it was $17 million.”
Ertech’s cash and cash equivalents also rose from $24 million to $42.3 million, with this entire amount either at bank or on hand.
The company’s total equity also climbed from $89.3 million to $100.3 million as of June 30 2024 – including $90.8 million in retained earnings.
“We’re thrilled – our net tangible assets are now over $100 million,” Mr Miller said.
“Which for a private company, we think is pretty good. It’s about our confidence. It means we have a really robust, strong, balance sheet and robust cash position.
“So this gives us a significant amount of financial resilience, particularly for a contractor.
“So I guess our clients who we work for can get a lot of confidence that we are financially very resilient.
“And this then gives us the capacity then to target opportunities for growth, so we think it’s a fantastic position to be in, with a balance sheet of that strength.”
Mr Miller said the company remained “optimistic” heading into 2025.
“We’re very positive and optimistic,” he said. “Certainly, the order book is suggesting we’re going to have a similar level of activity over the next year or two from what we can tell.”
Last month, it was announced a joint venture between Duratec and Ertech would carry out $10 million worth of infrastructure planning work on behalf of the Department of Defence at HMAS Stirling, based at Garden Island.
