03/07/2013 - 14:54

Sombre end to challenging year for WA firms

03/07/2013 - 14:54

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The total value of Western Australian listed companies fell for the fourth consecutive month in June, a result described as “sombre” by analysts at Deloitte.

Deloitte’s WA Index fell 5.7 per cent during June, closing the financial year at $125.6 billion.

Over the 12 months to June 30, the index fell by 10.9 per cent.

Deloitte’s lead audit partner Tim Richards said the WA economy had experienced a number of challenges over the financial year, not the least of which included the rapid fall in commodity prices in recent months.

“These challenges are likely to continue in the near-term,” Mr Richards said.

“Companies are looking at a shift in strategy, with a focus on cost reduction and navigating through increasing regulatory burdens, at the same time profit margins are diminishing as commodity prices fall.

“Remaining competitive on an international level is important for the WA economy to stay in the game.”

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