Macmahon posts $218m loss

Macmahon Holdings has reported a net loss of $217.9 million for the financial year, on the back of impairments to its assets during what has been a tough time for contractors and mining services firms.

The company posted a 35 per cent slide in revenue to $660.2 million, with profit before asset write-downs at $13.7 million.

Macmahon declared no dividend for the year, with the company declaring itself debt-free at June 30, with $74.2 million cash in the bank and an order book of $1.2 billion.

However, looking forward, the company expected revenue to fall to between $280 million to $350 million.

Recently appointed chief executive Sybrandt van Dyk said while the year had been very challenging for the business, it had worked hard over the past 12 months to restructure to better align with the current market environment.

“The sale of the company’s Mongolian business and the settlement of the CSA claim have provided a major financial cash boost to the organisation,” he said.

“Accordingly, we have recently repaid our debt and closed our syndicated banking facility. All of these changes have put us in a much stronger, more competitive position.”

Mr van Dyk said the $2 billion of new work for which Macmahon was tendering was spread across numerous clients and geographies.

“It covers a range of commodities including gold, copper, nickel, iron ore, coal and phosphate,” he said.

“We are optimistic that given our revised operating model and lower operating costs, we will be successful in securing some of this work in the near future.”

Shares in Macmahon were 4 per cent higher to 7.8 cents each at 10am.