Who said the mining boom was dead?

Monadelphous Group (ASX: MND) has today reported a full year net profit of $137.3 million, an astonishing rise of 44.5% over last year and its 11th consecutive yearly rise. Revenues were up 31% to $1.9 billion. Who said the resources boom was over?

The company also declared a fully franked final dividend of 75 cents, taking the total for the year to $1.25. Return on average equity rose to 62%, net profit margin rose to 7.1% and the company has net cash of over $150 million at the end of June 2012.

Monadelphous is an engineering contractor with three main divisions. Engineering construction, Maintenance and Industrial Services, and Infrastructure. During the 2012 year it worked on projects as diverse as Woodside Petroleum’s (ASX: WPL) Pluto LNG project, Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited’s (ASX: BHP) iron ore projects, the coal export terminal at Gladstone and installing pipelines for Chevron’s Gorgon LNG Project, as well as water and sewerage projects for various utilities and councils.

The company’s outlook was very optimistic. Resources and energy projects provide a high level of visibility for the 2013 financial year and beyond. Further growth in sales revenue is expected. The currently approved LNG projects will provide strong demand for Monadelphous’ services for the next few years.

The company also suggested that delays or deferrals of projects will allow more productive and sustainable outcomes, and provide welcome relief to an overheated market. The company’s diversification strategy should lend itself to sustainable growth, and it sees further opportunities in the water and power markets, new services and overseas expansion.

The Foolish bottom line

Monadelphous looks well placed to grow its sales and profits in the 2013 financial year, given its exposure to LNG projects as well as infrastructure, which should offset any slowdown in the resources sector. Currently trading on a trailing P/E of 14.0 and paying a fully franked dividend yield of over 6%, it could be one to add to the watchlist.

If you’re in the market for some high yielding ASX shares, look no further than our ”Secure Your Future with 3 Rock-Solid Dividend Stocks” report. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

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Motley Fool writer/analyst Mike King owns shares in Woodside Petroleum and BHP. The Motley Fool‘s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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