28/11/2016 - 15:53

Brierty expects $5m half-year profit

28/11/2016 - 15:53

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Perth contractor Brierty has confirmed it expects to report a significant uplift in half-year profit after cutting back costs and adopting a ‘back to basics’ strategy.

Brierty expects $5m half-year profit

Perth contractor Brierty has confirmed it expects to report a significant uplift in half-year profit after cutting back costs and adopting a ‘back to basics’ strategy.

Brierty expects profit before tax to come in at about $5 million in the first half of the 2017 financial year, up from its $600,000 profit result in the previous corresponding period.

In a statement, the company said the turnaround was driven by solid operational performance across its projects, coupled with achieving significant cost efficiencies within the group.

Brierty shares spent most of the day locked in a trading halt, but were up 15.7 per cent to 11 cents each at the end of the session.

Chief executive Ray Bushnell said the improved performance demonstrated the early success of the company’s back to basics strategy.

“Our strategy has been about ensuring a strict focus on executing projects productively and discipline in targeting areas that generate a profit for Brierty,” Mr Bushnell said.

“This has also meant revamping parts of our business, with a flatter management structure, improved internal reporting, enhanced plant management, and standardisation of practices across the business.

“These initiatives have provided greater visibility on projects and are driving a turnaround in our financial performance, with solid contributions across our mining services, civil, and land development projects.

“While the market has remained competitive, we have a strong order book totalling $238 million and believe our strategy positions Brierty well to deliver profitability on that backlog as well as capture work in the opportunity pipeline.”

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