Macmahon set to double FY2010 profit

Mining services and civil engineering firm Macmahon Holdings Ltd says it expects to double earnings in the 2009/10 financial year as the resources sector rebounds and it expects to win its first overseas contract.

Macmahon expected to post a net profit of $34 million for the year to June 2010, up from $17 million for the previous financial year, chief executive Nick Bowen told the company's annual general meeting in Perth on Friday.

"In addition to our work in Australia, the company has been looking for new opportunities overseas, which we see as a way to further grow and diversify our business," Mr Bowen said.

Chairman Dick Carter, who was to resign at the end of the meeting, told investors that 2008/09 was a "very disappointing year", with the company affected by the mining sector downturn, the loss of a construction contract and project deferrals.

However, it expects to win about $800 million in new contracts and contract extensions in the next three months.

Macmahon is in final negotiations with an existing customer for a contract in West Africa.