WATPAC BRACES FOR $50M CONTRACT FALLOUT

Written on the 20 November 2014

WATPAC BRACES FOR $50M CONTRACT FALLOUT

WATPAC Limited (ASX:WTP) has forecast a flat profit result this financial year amid uncertainty surrounding one of the company’s major clients.

Iron ore miner Pluton Resources Limited went into administration on October 31, with a potential flow-on effect for the construction company’s services contract at Cockatoo Island.

The project had been expected to contribute approximately $50-$60 million in revenue to Watpac’s national mining and Western Australia civil business unit.

But the company has warned that revenue and profit will be “adversely affected” should mining services works not resume.

Watpac has announced in a statement that full-year underlying net profit after tax is expected to be in line with its FY14 result of $17.85 million.

In the six months ending December 31, Watpac is expected to deliver an underlying profit between $5 million and $7 million.

The updated guidance has been delivered with the assumption there will be no profit contribution from the Cockatoo Island project.

WTP has recently commenced a number of construction projects, with the timing of the profit recognition still to be confirmed.


Latest News

STAFF CHURN BLAMED FOR MCGRATH EARNINGS DOWNGRADE

MCGRATH will fail to meet earnings forecasts after some of its star real estate agents defected to growing Perth firm...

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediatel...

REDBUBBLE TO MISS IPO FORECASTS

REDBUBBLE, the online marketplace for independent artists, will miss a series of forecasts set out in its IPO in its ...

BLUESCOPE CONTINUES STRONG RUN WITH GUIDANCE UPGRADE

BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance thi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter