reason for todays 30% rise

http://www.cairns.com.au/article/2010/02/17/94135_local-business-news.html

$25m CEC project kickstarts Cairns building

Nick Dalton
Wednesday, February 17, 2010
The Cairns Post

THE Far North's largest construction company, the CEC Group, is on the road to recovery with a $25 million land sale and building contract south of Cairns.
Company chief executive Roy Lavis said it was the first of several major deals to be announced and firmly put the company back on track.
The deal involves the sale of 79 blocks of land at its Gordonvale-based estates of Riverstone Hills, Fairways and Nelson's Crossing and another contract to build 96 homes to a syndicated buying group of southeast Queensland investors.
Mr Lavis said the deal showed that the fortunes of the group were starting to turn.
He also said it would pave the way to settling outstanding debts to creditors.
Mr Lavis said it had been difficult to run the business with continuing rumours about the company's future.
"Don't listen to every rumour you hear. These rumours have been ongoing for the past two years," he said.
The deal was in its final stages and could not come at a better time.
"This large number of sales has come at an excellent time for Cairns and for our company," he said.
"Clearly this group recognises the value in the local market and the reality that there is an imminent housing shortage," Mr Lavis said.
"It shows considerable confidence in the north Queensland property market and this will stimulate the market for ongoing property sales.
"It will also provide considerable work for subcontractors for at least six months which is a major shot in the arm for the building industry overall."
Work is expected to start on the properties immediately after land settlement. The project is expected to create up to 30 new jobs.
Mr Lavis said CEC was one of the first in the region to feel the impact of the global financial crisis.
He said the company had been working hard for the past 18 months to put the company back on solid ground, reducing the debt from $168 million to $80 million.
"We have reduced our debt level considerably, a huge feat and one achieved mainly by selling property assets," Mr Lavis said.
He said the company's other divisions had been consolidated to run as efficiently as possible.
Mr Lavis said he was confident CEC would return to profitability soon.
"We are very close to being back on solid ground and that is due in no small part to the support of our financiers, our suppliers, our contractors, our staff and, of course, our loyal customers," he said.
"Our bank is well and truly on board and that certainly helps.
"We also have a number of key announcements to make in the coming weeks, which will re-establish confidence in the company."
Mr Lavis said CEC Constructions had put in tenders for millions of dollars worth of federally-funded and private projects in North Queensland.
"We are working on some very significant joint ventures, tenders and new opportunities with some impressive partners. At this stage all I can say is that they will all be extremely beneficial to the people of Cairns and Townsville," he said.