Shares in Transfield rose seven per cent to a one-month high on Monday after the company said work-in-hand gained 21 per cent to $11 billion and net profit in 2008/09 will increase between 10 and 20 per cent, equivalent to as much as $99 million.
Net profit for the 12 months to June 30 fell 25.6 per cent to $82.17 million, but the Sydney-based Transfield said the results were not directly comparable with 2006/07 because the company had listed Transfield Services Infrastructure Fund that year.
During 2007/08, Transfield expanded its property management business in the US, began servicing the Canadian oil sands industry and entered the wind farm market to increase its sources of revenue from its traditional areas of providing services to miners and infrastructure providers.
"We're very confident in the overall business mix that we have, the diversity of geography and the diversity of industries that we're in," chief executive Peter Watson said in a telephone conference.
"We're really really on track to deliver sustainable growth."
The stock rose 55 cents, or 7.14 per cent, to $8.25 as of 1339 AEST, the highest since July 24. The shares have recovered some of the losses since May 16, when they fell 25 per cent after the company downgraded its profit guidance, saying the high Australian dollar had hurt its overseas earnings.
Net profit before amortisation grew 5.1 per cent to $106 million, within the updated guidance given by the company in May, underpinned by a cash distribution of $24.2 million to Transfield from the infrastructure fund.
The fund, which holds investments in five power stations, two water filtration plants and four wind farms, was spun-out of Transfield in June 2007 and reported full-year net profit of $25.7 million last week, beating its forecast of $20.5 million contained in offer documents.
Transfield's revenue during the 12 months to June 30 climbed 30.6 per cent on the corresponding period to $3 billion.
During the year, the company began its operations in its joint venture to provide services to the Canadian oil sands sector, helping revenue in its North American resources and industrial group quadruple.
In the US, Transfield bought property management companies Horizon National Contract Services and Whelan's International, boosting sales.
Transfield also bought transport infrastructure company VMS to grow in the US public infrastructure markets.
Revenue for the company's North American operations nearly tripled to $1.01 billion.
Transfield bought an Australian portfolio of Wind farm development rights in December to increase the company's exposure to the growing renewable energy market.
The company's sales in Australia increased 12 per cent to $2.03 billion, mainly as its power and water infrastructure services grew.
Transfield declared a final dividend of 18 cents a share, taking the full year payment to 36 cents, compared with 31 cents for 2006/07.
The company said operating cashflow grew 22 per cent to $216 million and net debt rose to $584 million, with no maturity due in 2009 after refinancing in June.
