Australia: Adelaide Brighton achieves higher profit

While sales volumes for the full year to December at Adelaide Brighton are expected to be similar to 2012, the company is making headway on revenue earnings. It reported a 4.5 per cent increase in revenue to a record half-year result of AUD579.3m (US$520.7m) and a 2.9 per cent increase in underlying net profit after tax to AUD60.9m for the half year ended June.

A a number of projects are expected to offset a continuing weak trend in residential and non-residential building demand, which will impact on the 2H13 for the company. Adelaide Brighton has boosted its revenue by selling off land surplus to requirements which may well generate some AUD110m over the next decade.

The board has declared an interim dividend of 7.5 cents per share, which represents a payout ratio of 78 per cent on earnings per share of 9.6 cents.