MDM beats expectations

MDM Engineering Group rose almost seven per cent on Wednesday after its results topped market expectations and the company said there was more to come in 2013.

The firm bounded into the black reporting a full year pre-tax profit of $7.8m, up from a loss of $2.1m the year before.

Revenues rocketed up 428% to $89.1m, taking earnings per share up to 15.37c.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The company also increased its final dividend substantially from 3c a share to 5.2c.

This meant a doubling of the full year dividend to 7.70c per share.

MDM also said it had secured a pipeline of projects sufficient to improve the firm's numbers further in its 2013 results.

"I believe that MDM has now achieved the critical mass required in terms of skilled resources, as well as the correct mix of projects to sustain gradual organic growth and be highly profitable," said Chief Executive Martin Smith.

"Looking ahead we plan to maintain our culture of keeping close to clients, build fit-for-purpose plants and making sure we deliver on our promises."

He attributed the company's success to senior executive's hands-on management efforts, minimising costs and focusing on efficiency.