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

HOW WEDDING WOES INSPIRED A BOOMING BUSINESS FOR MEGAN ZIEMS

WHEN she was dress shopping for her wedding in 2010, Megan Ziems (pictured left) was disappointed to discover a ma...

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

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