05/02/2015 - 09:53

Macmahon flags $135m impairment

05/02/2015 - 09:53

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Perth-based Macmahon Holdings has flagged a $125 million to $135 million impairment in first-half profit on the back of challenging market conditions in the mining services sector.

Macmahon flags $135m impairment

Perth-based Macmahon Holdings has flagged a $125 million to $135 million impairment in first-half profit on the back of challenging market conditions in the mining services sector.

The company said it would impair the carrying value of some of its equipment, goodwill and inventory assets, and make a provision for an onerous lease on certain office premises.

“The decision to make this impairment and recognise the onerous lease provision was made as part of the company’s mid-year review process,” the company said in a statement.

“This review took into account the continued low commodity prices and challenging market conditions for the mining services sector.

“As a result of this review, Macmahon now considers that demand for the company’s services will remain subdued for longer than anticipated.”

The news comes just two weeks after former Macmahon boss Ross Carroll announced his immediate retirement.

Macmahon shares were 1.7 per cent lower at 5.6 cents per share at 9:50am.

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