23/06/2017 - 10:25

GR Engineering flags lower earnings

23/06/2017 - 10:25

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Shares in GR Engineering Services took a hit this morning after the company lowered its revenue and earnings outlook for FY17 after expected income from some projects were deferred until next year.

GR Engineering flags lower earnings
GR Engineering says revenue that was expected to materialise before the end of FY17 had been deferred into FY18.

Shares in GR Engineering Services took a hit this morning after the company lowered its revenue and earnings outlook for FY17, after expected income from some projects were deferred until next year.

In a statement, Perth-based GR Engineering said revenue that was expected to materialise before the end of FY17 had been deferred into FY18.

It now expects to report revenue of between $215 million and $220 million, down from $255.3 million earned in FY16.

Earnings will now come in at between $16 million and $17 million, down from $26.1 million achieved last year.

The news sent the company’s shares down 6.1 per cent, or 9 cents, to $1.37 this morning.

“While FY17 financial results have been impacted by the deferment of revenue, we are pleased that work on a number of significant projects is now well underway,” managing director Geoff Jones said.

“Based upon engineering design and construction work on hand, growing contributions from Upstream Production Solutions and near-term opportunities for additional work, we now expect revenue in FY18 to be in the range of $300 million to $330 million.”

GR Engineering’s financial results for FY17 will be published in August.

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