MIXED RESULTS CURB WATPAC'S PROFIT

Written on the 24 February 2015

MIXED RESULTS CURB WATPAC'S PROFIT

WEAKER commodity prices have hampered Watpac Limited's (ASX:WTP) half year profit, despite strong performance from its contracting businesses.

The construction and mining services company reported a net profit after tax of $6.2 million for the first half of FY15, compared to $7.4 million in the previous period.

An increase in contracting revenue to $450.8 million was offset by a decline in mining revenue of $143.7 million, in comparison to $147.7 million in the first half of FY14.

Watpac managing director Martin Monro (pictured) says the results are a reflection of the group's long term strategy amid mixed operating environments.

"The strength of the construction industry has seen Watpac's contracting businesses perform extremely well over the past six months," Monro says.

"This markedly improved financial performance is reflective of our national approach to construction activities, combined with strategies we have put in place to further strengthen our balance sheet and build on our client relationship capabilities.

"Weaker commodity prices have hampered the mining industry which has resulted in reduced profitability for all operators in the sector."

Looking ahead, Monro says the company will deliver solid growth with more than $250 million in new contracts and extensions in the pipeline.

The total forward order book is valued at $1.2 billion, including the $24 million Ronald McDonald House project in South Brisbane.

"With the strength in contracting, and stabilising results in mining and civil we remain confident in our guidance of an underlying net profit result broadly in line with last year, and a further strengthening in our balance sheet position," Monro says.

Watpac has $162 million in cash and term deposits, while debt has been reduced to $56 million.

WTP will pay an interim unfranked dividend of two cents per unit on March 27.


Latest News

IF YOU LOSE YOUR MOJO, YOU LOSE YOUR BUSINESS: GLEN RICHARDS

HE'S one of the "sharks" on the hit show Shark Tank and Dr Glen Richards deals with startups and sca...

MEET THE MELBOURNE ACCELERATOR PROGRAM BUILDING THE FUTURE OF CYBER SECURITY STARTUPS

IN the wake of the WannaCry ransomware attack, companies are more often considering how personal data is protected...

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

Related News

IF YOU LOSE YOUR MOJO, YOU LOSE YOUR BUSINESS: GLEN RICHARDS

HE'S one of the "sharks" on the hit show Shark Tank and Dr Glen Richards deals with startups and sca...

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

BELLAMY'S SHARES TANK AFTER TRADING HALT IS LIFTED

SHARES in infant formula maker Bellamy's Australia (ASX: BAL) plummeted 11 per cent in early trade on Thursday...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter