INFRASTRUCTURE UNCERTAINTY STALLS SEYMOUR WHYTE

Written on the 24 February 2015 by Laura Daquino

INFRASTRUCTURE UNCERTAINTY STALLS SEYMOUR WHYTE A SLOWING of the Queensland transport infrastructure market stalled Seymour Whyte's (ASX: SWL) earnings for the half year period to December, with the company now focusing on geographically diversifying Australia-wide.

Revenue for the Brisbane engineering group decreased 18.2 per cent over the period to $123.3 million, while NPAT declined 34.8 per cent to $3.2 million.

While Queensland is still the primary revenue source for the company, contributing 58 per cent of total revenue during the recent reporting period, SWL managing director David McAdam (pictured) says the group has been focused on building a "more balanced business". The company's half year report notes a less than 50 per cent reliance on individual geographies.

New South Wales is the second largest market for SWL, trailing Queensland distantly to contribute 25 per cent of total revenue.

"Seymour Whyte has been undertaking a transformation over the past two years to build a stronger, more competitive, more balanced business," says McAdam.

"Expanded operations enable us to better withstand changing conditions in individual markets and lessen our historic dependence on Queensland transport infrastructure."

A number of new projects supported this including the $86 million Greater Western Highway and $26 million Green Square Trunk Stormwater Project, both in New South Wales. 

This contributes to SWL's total new project wins of $355 million to increase the company's order book to $450 million but its half year report adds that "trading conditions remain challenging".

The company's contestable market in transport infrastructure is now estimated at approximately $9.6 billion between fiscal year 2015 and fiscal year 2019, Queensland contributing $5 billion to this.

However, there is looming uncertainty around the timing of these new projects and "increased uncertainty in Queensland" suggests the tender pipeline could be pushed back. 

SWL's cash position remains strong at $35.5 million, down from $40.8 million on June 30.

The company will pay an interim dividend of 1.75c per share fully franked, down from the previous corresponding of 2.5c per share fully franked.



Author: Laura Daquino Connect via: Twitter LinkedIn

Latest News

ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

NEWS Corporation (ASX: NWS) has been given the green light to acquire Australian Regional Media (ARM) from APN New...

ENTREPRENEUR'S NEW VENTURE SWEET AS 'HONEE'

A MELBOURNE entrepreneur hailing from the food tech scene has launched a new venture to change the face of beauty....

WATER VENTURE TAKES ON THE PLASTIC SCOURGE

DAMIEN Stone has a thirst to build the world's biggest social enterprise in a clean fight against the plastic ...

BUNNINGS BOSS JOHN GILLAM QUITS WESFARMERS

THE man behind Bunnings' home improvement domination has resigned from his role in charge of the retailer.

...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter