Matrix to pursue contract payment

Local manufacturer Matrix Composites & Engineering lost a fifth of its value on the ASX today after announcing it had received a cancellation notice for two contracts worth a combined $US21.8 million ($A30.5 million).

Matrix said today it had received a request for cancellation notice from an unnamed shipyard customer.

The notice was in relation to two contracted orders for buoyancy riser systems, each worth $US10.9 million.

While Matrix wasn’t scheduled to begin work under one of the contracts until the2018 financial year, it says it has already completed its contractual obligations on the other contract.

“Matrix intends to pursue its commercial rights under the contract,” the company said in a statement.

Matrix manufactures and supplies products and services to the energy sector.

Shares in Matrix were 20.4 per cent lower to 35 cents each at the close of trade.