Summary of Results

This is the fifth consecutive year of record profit and sales for RCR and the board has declared a fully franked dividend of 5 cents per share.

The results reflect the strong contribution from the underpinning recurring income derived from maintenance work throughout the Australian operations, a continued strong performance from resource equipment sales from the Bunbury operations and the continuing demand for steam boilers, particularly with respect to the food and beverage processing sector.

The profit after tax result was assisted by a higher number of research and development projects completed during the year. The increased spending on research and development projects will be maintained over the next year as RCR continues to offer its clients new innovative designed products that position RCR as a supplier of choice.

The solid result was achieved in a difficult year for the company where project delays impacted significantly on the profit result for both the electrical and mechanical construction business units. The mechanical construction division did not commence any new project work until late January 2008 and the Positron result was impacted by the delay in the Prominent Hill project.

The acquisition of Positron increased the total revenue for RCR but had a negative impact on the profit margin for the company during the 2008 financial year due to project delays and underperforming projects at Boddington and NSW combined with the storms around Mackay impacting on work loadings for Tripower in Mackay. The Positron situation has improved significantly over the past few months following an organisational restructure and employee numbers returning to similar levels as at the time of purchase now that the Prominent Hill project is underway.

Outlook

RCR has commenced the new financial year with a strong order book relating to non recurring project work. This order book which now includes Positron, is currently standing at $170 million compared to $50 million at the corresponding period last year. The Company also has a significant number of construction and engineering projects at advanced discussion stages with clients. RCR are waiting on decisions relating to $150 million worth of tenders submitted and the current enquiry level is in excess of $250 million. This level of enquiry represents more than two years of project work for the Company.

RCR has commenced a significant number of new projects during the first quarter of 2009 financial year and with current policies regarding profit recognition this will result in a weighted second half with respect to net profit after tax.

The workload is expected to increase over the next few years based on the resources, oil and gas market remaining strong and infrastructure spending continuing in the energy sector. Chief Executive Officer, John Noordhoek stated that “RCR is expecting organic revenue growth of 15% in the 2009 financial year and an improvement in margin levels that will result in a commensurately stronger net profit after tax”.

The main challenge faced by RCR, and engineering contractors in general, continues to be project delays affecting the electrical and mechanical construction businesses. Project delays are being driven by constraints on skills and contractor workloads.

The outlook for the Engineering and Energy business units remains very strong as the global demand for Australian raw materials strengthens and the demand for additional power grows. RCR is extremely well positioned across a broad range of market sectors to add value to our clients’ requirements within our operating business units.

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