STATE'S STRUGGLE IMPACTS SEYMOUR WHYTE

Written on the 24 February 2016 by Laura Daquino

STATE'S STRUGGLE IMPACTS SEYMOUR WHYTE SEYMOUR Whyte (ASX: SWL) has eked out a profit of $200,000, challenged by the state of Queensland infrastructure.

Revenue for the half year period to the end of December was $166.4 million, up 35 per cent on the prior related period.

The Brisbane business reaped 45 per cent of its revenue in New South Wales over the period and expects its Queensland business to begin recovering from fiscal year 2019. 

Seymour Whyte was impacted by two loss-making projects over the period, margin compression particularly in Queensland and increasing competition vying for available work.

Today's result is within November 2015 company guidance.

Seymour Whyte managing director and CEO John Kirkwood says it was an 'extremely challenging year for the industry' but 'active diversification' across states and type of work partially offset feeling the full brunt of this.

"We strengthened our position in new service markets with additional contracts awarded in the airports sector," says Kirkwood.

"Successful contract performance on major projects continues into the second half, on projects such as Townsville Ring Road 4, Green Square Trunk Stormwater Drainage Upgrade, and work at Sydney Airport."

"The Group is focused on improving profit across existing contracts, identifying new opportunities to enhance profitability, and utilising our strengths for significant new project opportunities."

Despite challenges, Seymour Whyte reports a strong balance sheet with unencumbered cash of $32 million. Its order book totalled $350 million at the end of the half year, of which $191 million is secured revenue for delivery at the end of the fiscal year.

In New South Wales, ten infrastructure projects were active during the half year to December.

A southern recruitment drive has resulted in more than 70 new employees joining Seymour Whyte over the past 14 months to support an increase in new state-wide projects.

New South Wales is poised to receive 59 per cent of all the company's transport projects over the next half, and QLD 64 per cent of utility projects.

Full year guidance has been revised to a range between $4 million and $5 million.

Seymour Whyte will pay a fully franked interim dividend of 1.75c per share, with expectations for a strong second half.


Author: Laura Daquino Connect via: Twitter LinkedIn

Latest News

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

ADELAIDE DIGITAL MARKETING GURUS CHANGING THE FACE OF ONLINE RETAILING

Frank Grasso, CEO of Adelaide based Dynamic Creative, believes his company's new software will revolutionise Adwo...

WHY A JUNIOR MINER DECIDED TO JOIN THE RANKS OF THE HOT POT STOCKS

USUALLY, when a relatively unknown explorer experiences a sharp spike in its share price, it means they've fou...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter