Matrix Composites & Engineering says the worst is behind it after recording a $2.9 million loss for the year ended June 30, a significant improvement on the previous year.
Matrix announced a modest 0.5 per cent rise in revenue for financial year 2013, while its loss narrowed from a $14.4 million loss in FY2012.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased 157 per cent to $7.5 million, coming in just under its guidance of around $8 million flagged in June.
The results were affected by a lower than anticipated order conversion, Matrix said, as well as disruptions to production stemming from a restructuring of the company’s operating shift roster.
Matrix also said it encountered lower than anticipated demand for its well construction products, while it took a $5 million hit, announced in June, due to continuing weakness in commodity markets and a failure to pay staff adequate superannuation.
Nonetheless, the result was a significant improvement on the previous year, which Matrix said reflected the stable output from its Henderson operations.
Matrix said its adjusted debt-to-equity ratio fell to 8.1 per cent at June 30, down from 11.5 per cent the previous year.
“Matrix is confident that the strong market outlook for its product, stronger operating performance from its Henderson facility and relief provided by the lower Australian dollar will result in significantly improved future earnings,” the company said in a statement.
At 11:00AM, WST, Matrix shares were down 3.8 per cent, at 87.5 cents.
