GCS flags lower earnings in tough market

Global Construction Services has forecast a big fall in full-year earnings amid challenging market conditions and continued delays to major projects. 

Perth-based GCS told the market it expects its 2014 financial year earnings before interest, tax, depreciation and amortisation to come in between $28.5 million and $30 million.

The company posted EBITDA of $47.7 million in the 2013 financial year.

GCS said it would also allow for a $1.5 million doubtful debt provision relating to revenue lost from the collapse of failed engineering company Forge Group.

Despite the earnings downgrade, GCS said tendering activity remained robust in both the residential construction and oil and gas sectors.

"We are confident the business is well-placed to improve performance and take advantage of the significant pipeline of new project opportunities in FY15 and beyond," the company said.

GCS shares fell 2.5 cents on the news to close the day's trade at 45 cents.