Macmahon keeps FY20 guidance

Mining contractor Macmahon Holdings has maintained its full-year earnings guidance but will delay previously planned capital expenditure in an effort to preserve cash.

The Perth Airport-based company today said the economic situation around COVID-19 has not had a material impact on its overall financial performance.

“As a result, the company does not currently see a need to change its guidance for this financial year,” Macmahon told the market.

The announcement follows a strong interim financial report released in February, comprising a 22 per cent net profit increase to $28.7 million and 27 per cent rise in revenue to $686 million.

The contractor said despite limited financial impacts, it would adopt a cautious approach to expenditure.

Macmahon said it had a strong balance sheet consisting of $155 million in cash and unused working capital facilities, as at December 31 2019.

The company has also finalised its previously announced contracts with Silver Lake Resources – awarded to Macmahon’s GBF underground mining division – for further work at the Mount Monger gold operations in Western Australia.

“The company is well positioned to work through this challenging period,” Macmahon said.

The contractor confirmed it had paid its interim 30 cents per share dividend, announced in February.

Macmahon’s shares closed up 3.7 per cent to trade at 20 cents per share.