11.3% rise in profit for Fulton Hogan

One of Australasia’s biggest civil engineering and residential development businesses has pushed up annual profit 11.3 per cent to make $ 168.7 million.

Fulton Hogan, the family- owned, Christchurch- headquartered business, declared net profit after tax for the year to June 30 up from last year’s $ 151.6m. Earnings before interest, taxation, distribution and amortisation ( ebitda) was $ 336m. Nick Miller, managing director, said revenue of $ 3.1 billion was up 5.9 per cent on last year’s $ 2.9b in challenging market conditions and increased international competition.

The business, which also has quarrying, asphalt, construction and pre- cast concrete manufacturing operations, has finished the Lincoln Rd and causeway project in West Auckland and integrated new hard rock and gravel quarries it bought in the year.

“Increased demand for housing in Auckland and Christchurch has seen the company accelerate its land development activities at subdivisions in Auckland ( Millwater and Pokeno) and Christchurch ( Halswell and Lincoln),” the company said.

The business had sold more than 900 residential sites for housing in Auckland and Christchurch in the year.

“Replenishment of our land stocks is essential, so we have bought land at Pokeno, south of Auckland and land adjacent to the Millwater project at Orewa,” said Miller.

At Millwater in the Silverdale/ Orewa area, where the company is working with the Wayne Francis Family Trust, about 3500 residential lots have been created and about 70 per cent of development work has been completed.

Thousands of new places will be built beside Millwater and at Pokeno, Miller said, although the t wo sites await zoning and consenting processes.

“Those two sites will have in excess of 3000 residential lots in addition to what we’ve done today,” he said.

Fulton Hogan said it was also expanding in Australia.

“Steps towards diversifying the Australian construction business included growing its presence in the national broadband network, renewable energy, heavy rail and defence business markets,” the company said.

The Australian order book was strong after the company won some big projects, Miller said.

Those Australian jobs include the 30km widening of Melbourne’s Monash Freeway and an extension of broadband works.

“We generated $ 1.6b revenue out of Australia in the year and $ 1.4b in New Zealand and about $ 70m in the Pacific Islands,” he said.