MAC Services jumps on strong demand for mining accommodation
24/02/2010
The Australian
MINING accommodation provider MAC Services Group is preparing for the next upswing with plans for 1000 units in the next 18 months.
The company today reported net profit in the half year to December 31 of $13.789 million, up 13.9 per cent from $12.0106m in the prior corresponding half. Revenue rose 6.3 per cent to $56.754m.
Chief executive Mark Maloney said the production cutbacks by some resource companies adversely impacted occupancy levels but said booking had increased in the New Year.
“The level of enquiry for new rooms is solid and we expect approximately 1000 new rooms to be manufactured and installed over the next 18 months, at significant investment by the company,” he said.
Mr Maloney added that the return in demand had occurred quicker than expected.
“The recovery has been much stronger than most people anticipated and we have certainly been surprised by what is happening and what now appears to be on the horizon,” he said.
MAC said it had positioned itself for long-term growth in regions beyond the Bowen Basin, where its main focus is.
The company has acquired land in Gladstone and Wandoan in Queensland, and holds options over a new site in Moranbah, also in Queensland, and a property in NSW.
“We remain interested in expanding our presence in Western Australia beyond the goldfields region and continue to review prospects in that market,” Mr Maloney said.
“Discussions are continuing with BHP Billiton in relation to a new village at Roxby Downs to service the needs of Olympic Dam in South Australia, however we do not expect this to proceed this financial year.”
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