Fulton Hogan staff on site at a job in the garden city. The economies of both Auckland and Christchurch have contributed significantly to Fulton Hogan amassing $2.8 billion in forward orders. Photo supplied.
Private, family-owned roading, infrastructure and resources
company Fulton Hogan is setting the foundation for expansion,
delivering a strong half-year result and has more than $2.8
billion of forward orders in New Zealand and Australia.
The company's revenue, for six months of trading to December,
was ahead of budget.
Profit before tax was up 144% to $92.8 million, debt of
$138.9 million was repaid and the company had refinanced
about $155 million of its banking facility, from strong
cashflow and continued sales of non-core assets, managing
director Nick Miller said.
''The company has performed solidly, and its results, along
with a significant forward order book, are helping position
the company to move into a new growth phase, once an ongoing
share buy-back from former cornerstone shareholder Shell is
completed later this year,'' he said in a statement
He said the company's ''new growth phase'' would be over the
next 18 months.
In New Zealand, there had been increasing workloads in
infrastructure and regional businesses, plus strengthening in
the economies of Auckland and Christchurch.
In Australia, profit had been driven by completing seven
airport projects, the extension of two maintenance contracts
and securing ''a number'' of major port and water contracts,
Mr Miller said.
Forty percent of the Pacific Highway project, from Sapphire
to Woolgoola, was completed and open to traffic, which
''significantly reduced risk'' to Fulton Hogan's Australian
Mr Miller noted all but one of seven Australian projects
previously classed as ''distressed'' had now been completed.