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Tutt Bryant Group Limited (TBG) reported an NPAT of $6 million for the six months ended 30 September 2009, down 57% on the $13.8 million profit reported on the previous corresponding period (“pcp”). The company said its business outcomes were significantly impacted by subdued customer demand across all divisions, although business activity in the Crane Hire and Heavy Haulage Division was more resilient.

Managing director David Haynes said the unanticipated 6 to 8 month delay in the commencement of several major projects was an additional negative factor that weighed heavily on revenue and earnings for the period.

“While the Group’s reported trading results are clearly below expectations, the unsatisfactory trading result should not obscure the solid achievements made by the group in the half year in improving market share, reducing gearing, strengthening the balance sheet, limiting expenses and improving cash flow,” Mr Haynes said.

”When demand for the hire and purchase of our equipment improves, the Group will be well positioned to take advantage of the inevitable business upturn.”

The company reported a 28% drop in revenue to $126 million compared to the pcp and an EBIT of $9.9 million which was down 54% on the pcp.

Tutt Bryant said net gearing ratio stood at 35% at the end of the period.

The company’s directors also declared a fully franked dividend of 2c per share to be paid on 20 January 2010.

Looking ahead Mr Haynes said any revenue and profit improvement is expected to impact first on the Crane Hire Division due to its major presence in Western Australia and the need to service the resources and oil and gas industries.

“It is expected that equipment sales will gradually improve over the next 12 months as finance for capital purchases becomes available and general hire will also improve as a result of an increase in infrastructure and commercial construction spending,” Mr Haynes said.

Mr Haynes added that the company was not in a position to give any reliable guidance for the full year due to the uncertain trading conditions.

At the close of trade Friday, Tutt Bryant shares were trading at 86c.

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