Sydney - Tuesday - November 21: (RWE Aust Business News) - Monadelphous (ASX:MND) has entered the 2007 financial year with confidence, its managing director said today. Rob Velletri told shareholders at the annual general meeting that the 2006/07 year signals a strong and high quality workload following the award of a number of very significant contracts. "Sales revenue is therefore forecast to spike significantly in the first half to around $450 million," he said. "With a number of projects ramping down, second half sales revenue is expected to return to a more normalised level with full year sales revenue estimated to reach around $750 million, which represents a 40pc increase on the previous year." Mr Velletri said the core business was highly dependent on mineral resource developments and in particular the massive iron ore expansions which are currently fuelling enormous growth in Western Australia. "Sustaining this level of revenue will obviously be challenging though market conditions are forecast to continue to be buoyant with the visibility of a strong project pipeline remaining at two to three years," he said. "Skills shortages will remain a major challenge and revenues will continue to be dependent on project timing and capacity constraints.
MND Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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