VDM Group has continued its horror run, with its full-year loss has blowing out to $84.4 million on the back of a major contract dispute.
The dispute was flagged earlier this week by the engineering and construction contractor, sparking a sell-off by investors that nearly halved the value of its stock.
VDM said today that its operating result for the second half of the 2013 financial year had taken a $24.3 million hit as a result of the dispute, with the company not recognising the value of works prior to it being removed from the mine site in question.
VDM booked a $60.1 million loss in the first half of FY2013.
Revenue was down 11 per cent to $205.2 million, while the company will not pay a dividend for the financial year.
VDM said it was currently seeking a resolution to the contractual dispute and was pursuing the unapproved claims and variations for the project.
The blowout in VDM’s loss comes around a week after chief executive Andrew Broad stepped down from the company, ending plans for a smooth transition to new chief Dongyi Hua.
Chairman Michael Perrot is currently acting as chief executive.
At 12:20PM, WST, VDM shares were steady at 1 cent.
