Operating profit after tax for the 2010 year was $A16.7 million and, despite results so far tracking those of last year, the company is expecting an operating profit after tax of around $10 million.

“The lag can be attributed to a number of factors including the ongoing global financial uncertainty, recent Australia political events which created confusion and uncertainty, including the mining resources super-profits tax, the inconclusive federal election and the latest mining resource rent tax,” the company said in a statement.

VDM said the outlook for the remainder of the financial year depends on the timing, award and revenue delivery of new projects.

The company said tendering activity remains high and it is targeting projects worth $3 billion, all likely to begin in 2011 and 2012.

“These include green and brownfields projects associated with iron ore and gas developments in Western Australia, and in coal and coal bed methane gas developments in Queensland,” VDM said.

The company will also assess the carrying value of goodwill associated with the consulting division, which currently stands at around $22 million.

Shares in VDM slumped on the news this morning, dropping nearly 12% or 5.5c to 41.5c.