The British Virgin Islands-registered MDM Engineering Group Limited has announced its unaudited interim results for the six months period ended 30 September 2010. In the first six months of the year, the BVI company reported revenue of US$7.19 mln (as compared to US$22.4 mln in the first six months of 2009). Company’s gross profit was US$1.51 mln (as compared to US$7.24 mln in 2009). Loss before taxation in the six months of 2010 was US$2.48 mln (US$5.05 mln in 2009), cash and cash equivalents were US$15.03 mln (US$13.37 mln). An interim dividend of US 0.50 cents will be declared and paid (US 3.75 cents in 2009).
Gross profit margin of 21% was recorded for the first six months, compared to a gross profit margin of 30.5% for the year to 31 March 2010, and 32.3% for the corresponding period in the year 2009. The BVI Group made a loss before tax of US$ 2.5 mln, as opposed to a profit before tax of US$5.0 mln for the corresponding period in the prior year.
Financial recovery is expected in the second half of the 2011 financial year, and management’s efforts have been focused on securing a healthy order book for the 2012 financial year onwards. By words of MDM Engineering CEO Martin Smith, the effect of the global credit crisis had a direct impact on MDM’s first half performance. He said however that there are signs of improvement, especially in the resources sector, and this will positively impact MDM’s 2011 year end results.
The MDM Group maintains a strong financial position, substantial cash reserves placing MDM in a strong position to capitalise on opportunities as the resources sector recovers.