Records tumble but debt option will wait

Yesterday the diverse services group reported a 10.4 per cent rise in full-year underlying earnings to $150.3 million, above market expectations.

"Despite the fact that it was a very tough year, the company has come out of the year better than it went into the year," the chief executive, Richard Leupen, said after reporting United's ninth consecutive year of earnings growth.

With gearing at 22 per cent  below its long-term target range of 30 to 40 per cent  the company has the balance sheet strength needed to acquire companies and its order book could soon surpass $10 billion for the first time.

Mr Leupen said it was always looking for takeover targets but no purchases were imminent. He said heating ventilation and air-conditioning services were an attractive sector.

Any acquisition was likely to be made with a combination of debt and equity, he said.

United has more than $150 million of undrawn debt facilities but most of that is set to mature in the 2011 financial year.

If United did not make a purchase within the next year or two, it would consider returning funds to shareholders through a special dividend or buyback, Mr Leupen said.

"In the short term, the company will probably sit where it is."

The biggest proportion of its revenue comes from property but Mr Leupen said that would even out over time. As with Leighton Holdings, United is looking for work from the boom in liquefied natural gas plant construction.

United shares closed 40c higher at $13.10.