26/02/2013 - 14:56

GR Engineering profit slumps but outlook buoyant

26/02/2013 - 14:56

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GR Engineering remains confident of an improved second half performance after one-off costs and project deferrals resulted in an 81 per cent fall in interim profit.

The company today announced a net profit of $1.2 million for the six months to December 31, down from $6.7 million in the previous corresponding half year.

Revenue came in at $56.6 million, down 28.6 per cent on the half year to December 31, 2011, consistent with the company’s guidance released in November.

In November, the company announced one-off legal costs and a write-off associated with a now-resolved dispute with Gold Ridge Mining would result in a $2.1 million impairment to its half-year profit.

Managing director Joe Ricciardo said the company was pleased to have met its guidance for the first half of financial year 2013 and was confident of a solid second-half performance.

“GR Engineering is pursuing a number of initiatives that are all targeted at generating growth, maintaining and building upon the high standards we bring to our clients and to deliver greater total shareholder returns,” Mr Ricciardo said in a statement.

“We have embarked on executing our strategy and we are now well positioned to capitalise on the associated potential benefits, including a sustained improvement in financial performance.”

GR Engineering will pay an interim dividend of 2 cents per share.

The company is expecting improved conditions in the engineering and construction sector in the second half of the year, particularly through opportunities in gold, iron ore and industrial metals.

GR Engineering said it expected revenue in the second half to come between $65 million and $70 million, resulting in a pre-tax profit of around $8.5 million to $9.5 million.

At close of trade today GR Engineering shares were down 1.6 per cent, trading at 93.5 cents. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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