Cement sales spark Wagners profit
CONSTRUCTION materials firm Wagners posted a 30 per cent increase in profit in its first year as a listed company on higher cement sales.
Toowoomba-based Wagners said profit in the 12 months to June 30 rose to $24.8 million as revenue increased 20.2 per cent to $231.5 million.
Cement production rose almost 15 per cent over the year as it opened new batching plants.
Wagners chief executive Cameron Coleman said construction of renewable energy infrastructure including wind farms in Queensland had lifted demand for concrete.
Mr Coleman said the company was now making concrete from plants in Brisbane and Toowomba and had identified five other sites. Wagners, started 28 years ago by the Wagner family, raised $196 million in an initial public offering last December.
"The full-year performance was in line with expectations," said Mr Coleman. "Our concrete and quarry business benefited from infrastructure and construction work and will continue to grow as we execute our strategy in southeast Queensland."
Despite the result, investors were unimpressed with the shares dropping 13.2 per cent yesterday to close at $3.89.
Looking ahead, Mr Coleman said the company would benefit from large infrastructure projects in southeast Queensland and an expanded presence in the northwest Queensland minerals province.
The company declared a final fully-franked dividend of 3.5¢ per share.