SCEE flags second-half loss

Investors didn’t respond well to Southern Cross Electrical Engineering advising the market that it did not expect to report a profitable second half of the financial year.

The Perth-based contractor said the reduction in revenue and margin expectations for the six months to June was the result of a slowdown in the scheduled execution of work on an unspecified major project.

SCEE still expects to be undertake the work in the 2016 financial year, but did not disclose how full-year net profit for the 2015 financial year would be affected.

“Full-year net profit continues to remain uncertain at this point in time and is dependent on the outcome of this review, winning and timing of award and execution of future orders, progress of current projects and closing out existing commercial claims as currently forecast,” the company said.

“In this context the board continues to believe that it is inappropriate to give definitive full year earnings guidance at the present time.”

SCEE also said had brought forward the impending retirement of Simon High as chief executive for personal family reasons.

“In the meantime, Chris Douglass, the chief financial officer, has been appointed as interim CEO until the selected candidate has taken the post,” SCEE said.

“Mr High will remain available to the company in an advisory capacity during this transition period.”

SCEE shares closed 10.5 per cent lower at 34 cents per share.