Clough to top forecasts despite slowdown

Engineering and project services group Clough has announced an earnings upgrade, despite a drop-off in resources sector investment.

Clough said today its efforts to improve productivity and efficiencies across its operations would result in 2013 financial year revenue coming in at $1.5 billion, for a $90 million pre-tax and interest profit.

The company said it had already secured $1.35 billion in revenue for fiscal year 2014.

Clough told the market in February this year it expected a jump in revenue to $1.35 billion, for a pre-tax profit and interest margin of 5.5 per cent.

Today’s guidance represents a pre-tax margin of around 6 per cent.

Total revenue for Clough in the 2012 financial year came in at $1.005 billion, producing a pre-tax profit of $37.2 million.

Clough’s announcement today is in stark contrast to a host of major mining services sector participants that have flagged profit downgrades in recent months, as investment in new projects comes off the boil.

Earlier this week, WA-based contractors NRW Holdings and Macmahon forecast falling revenues, joining major national firms Transfield Services, UGL, Sedgeman and WorleyParsons.

At 12:00PM, WST, Clough shares were up 1.8 per cent, at $1.12.