DECMIL – the company which in 2014 won the $A147 million contract to design and build the expanded migrant processing centre on Manus Island – is expecting to deliver strong growth in the second half of this year.
A Hartleys Research note says that in an update to the market regarding the rest of 2018, Decmil reports that guidance for second half revenue is 150% of the first half, which implies $210 million, versus Hartleys' estimate of $250 million.
"For financial year 2019, guidance remains less than $500 million - our estimates had $560 million. Additionally, margins under pressure due to bid costs. Our 12-month price target is $1.23 per share."
Decmil, which is 40 years old this year, is one of Australia's leading firms which tackles complex, multi-disciplinary project delivery.
The company specialises in remote building and construction projects in Western Australia, road and bridge construction in Victoria, specialist engineering in New Zealand and owns the 1392-room Calliope mining village in Queensland.