Tutt Bryant Group Limited (TBG) said the next twelve months would see continued strong demand for cranes and general hire equipment in support of the Australian resources, infrastructure and industrial construction market segments. The company said although the economy was entering some choppy waters, its prospects in the FY09 remained bright.
Managing director David Haynes told shareholders at Tutt Bryant's AGM that the company continued to grow revenue and earnings across all of its divisions and had costs well under control.
In May, the company reported net profit after tax from continuing operations of $26.6 million for full year 2008. This was up 81% up on the previous year. Tutt reported sales of $303 million, up 31% on the previous year.
However, Mr Haynes admitted that capital equipment sales might slow down in some states because contractors were likely to keep machinery for longer as a result of the current economic climate.
"This reduction in business momentum in some regions will be partly compensated for by an increase in equipment hire revenue and the supply of parts from BT to cover servicing and maintenance of machinery being retained by contractors." Mr. Haynes said.
During the 2008 fiscal year, the company acquired Melbourne-based Bradshaw Ultra Heavy Haulage, Townsville-based Compactor Hire and Farren & Lawson, an equipment hire business in Goulburn, NSW.
Mr Haynes said more targets were being sought for acquisition this calendar year, however, for the current quarter a period of consolidation and strategic positioning was being applied.
"Whilst new businesses can be easily acquired, time must be spent on integration, culture, IT and administrative structures to ensure nothing falls through the cracks and that each new addition quickly becomes part of the group and does not remain in isolation," he said.
Mr Haynes said that in light of the recent global financial turmoil and interest rates which, combined with fuel and food price hikes, was causing disruption to the ebb and flow of business, it was the responsibility of management to continually review operations and put in place plans to mitigate any business impact arising from these conditions.
At close on Thursday, shares in TBG were up up 1.5c at $1.665