Brierty posts FY loss of $1.3m

21/08/2008 - 13:02

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Civil construction company Brierty Ltd has posted a full-year net loss of $1.3 million after downgrading its profit twice in its first year of listing on the stock market.

Brierty posts FY loss of $1.3m

Civil construction company Brierty Ltd has posted a full-year net loss of $1.3 million after downgrading its profit twice in its first year of listing on the stock market.

The Maddington-based company, which floated on the market in December last year, said the loss included the one-off listing expense of $5.1 million.

Earnings per share was down from $5.20 to $1.37.

Prior to its listing, Brierty had forecast a full-year net profit after tax for fiscal 2008 of $5.2 million but had revised that figure twice to a pro forma guidance of $3.6 million on the back of higher than expected costs and margin erosion on some contracts.

Brierty chief financial officer Tony Bevan said the contracts were now completed and would not impact the company's FY09 result.

The company achieved a final pro forma result for the year of $3.7 million.

Revenue over the period was up 40 per cent to $217 million while earnings before interest, tax, depreciation and amortisation was down 56 per cent just over $6 million, inclusive of listing expenses of $7.2 million.

Pro forma EBITDA was $13.4 million, while pro forma earnings per share for the full year was 3.85 cents.

Chairman Dalton Gooding said it was pleasing that Brierty had met its revised profit forecast after a difficult year for the company.

"The need to revise downwards our profit forecast for the year was very disappointing," Mr Gooding said.

"However, we are encouraged to have exceeded our prospectus revenue forecast by almost 10 per cent, re-affirming the scale and reach of the Brierty business and the opportunity for future growth.

"It is also pleasing that the issues that led to the revised profit guidance were fully contained and accounted for in the 2008 financial year, giving Brierty a clear run at profit growth in 2009."

Mr Bevan added that while the overall profit result was disappointing, the company's operating performance since late May indicated a turnaround.

"We are now well positioned for future profit growth," he said.

Last week, Brierty announced it had signed a letter of intent for a new $33 million contract with Fortescue Metals Group at its Cloudbreak iron ore project in the Pilbara.

The contract raised Brierty's level of contracted revenue for FY09 to over $140 million.

Mr Bevan said the company felt confident it would secure additional work in the coming months.

"Brierty's Mining and Infrastructure divisions, in particular, are well placed to capitalise on favourable market conditions," he said.

"The company's network of blue chip corporate and Government customers, built over the last 27 years, will be an added advantage in securing new work."

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