WATPAC'S HOSPITAL AND PROFIT EXPANSION

OFF the back of a profitable year, Watpac (ASX: WTP) has been awarded a $45 million hospital expansion contract.

The company will expand Knox Private Hospital in east Melbourne, commencing construction next month.

This comes following an announcement earlier this week of a $17.9 million after tax profit for the past financial year and adds to WTP’s current $2 billion portfolio, including the Queensland State Velodrome for the Gold Coast 2018 Commonwealth Games and the Southpoint Office Tower in Brisbane. 

WTP chair Chris Freeman says an improving east coast construction market and Western Australian civil operations have boded well with the company.

“We have been successful in the growth of our core businesses in the last 12 months, particularly construction, securing projects across a number of sectors including health, education, defence and public private partnerships which places us in good stead for 2015 financial year and beyond,” says Freeman.

WTP CEO Martin Monro (pictured) says the company’s contracting business has been a particular winner over the period.

“The group had a national work in hand position of nearly $2 billion as at 30 June 2014 and this is mainly attributable to the strengthening of our contracting business in FY14,” says Monro.

“While we have seen an increase in activity for the building industry, the resources sector has been soft. However our national mining and WA civil business is well placed to respond positively to the needs of the market.

“Our focus for the year ahead remains on strengthening our core businesses, in addition to the capabilities of our people, our culture and safety.”