Matrix to pocket $14m from previously-binned contract

Perth-based manufacturer Matrix Composites & Engineering says it will be paid the full $US10.9 million ($A14.2 million) owed under a previously cancelled contract with an unnamed shipyard customer, but work under a second contract will not proceed.

Peter Hood-chaired Matrix said it had reached an agreement with the customer for the delivery of a riser buoyancy system under the initial contract, and would receive 90 per cent of the contract’s value in the fourth quarter of the 2017 financial year.

The remained will be paid in the fourth quarter of FY18.

However, Matrix also said that a second order for another buoyancy riser system under a second contract, also valued at $US10.9 million, would not go ahead.

“Matrix understands the shipyard customer’s head contract has been delayed, however the company will advise the market if it receives a revised order for this system,” it said.

The two contracts were originally cancelled in February last year, but after discussions between Matrix and the customer in August an agreement to restructure the contracts was reached.

Matrix shares were 2.7 per cent higher to 57 cents each at midday.