Project delays have prompted Belmont-based engineering and construction company Paladio Group Ltd to report a smaller profit of $55,000 for the 2008 financial year.
In its preliminary final report, the company said delays coupled with costs related to refocusing the group on a regional basis have resulted in a net profit after tax of $55,000, compared to the previous year's loss of $4 million.
Meanwhile, revenue over fiscal 2008 increased to $128 million, up from the previous year's $38 million.
The group's order book now stands in excess of $135 million compared to the $60 million figure that was reached at the start of the 2007 financial year.
Below is the full announcement:
Please find herewith the preliminary final report for Paladio Group Limited for the year ended 30 June 2008.
Paladio achieved significant growth during 2008 with revenue increasing from $38 million in 2007 to almost $128 million in 2008. This has been a major achievement for the group and reflects the considerable effort that has been invested in developing the organisation to the next level. In addition, the order book now stands in excess of $135M compared to an order book of $60 million at the start of the 2007 financial year.
However project delays coupled with costs associated with proactively refocusing the group on a regional basis and building internal capabilities have resulted in a net profit after tax of just $55,000 for the 2008 year (2007: net loss of $(4,074,000)).
The group is now well placed as it enters the 2008/09 financial year with the main focus to continue to grow in a sustainable way while delivering increased earnings.
ABARE, in its April 2008 Major Development Projects update, reported $70.5 billion of major mineral and energy projects being in an advanced stage of development (up from $57.9 billion in October 2007).
The overall outlook remains strong, both in Western Australia and Queensland for the resource and energy sectors, and Paladio is now well positioned in both regions to take advantage of this opportunity.
