Watpac posts profit, prompts review

CIVIL and mining contractor Watpac says it will conduct a strategic review of its property assets after posting a $4.9 million profit for the first half of the 2012 financial year, up 15% period-on-period.
Watpac posts profit, prompts review Watpac posts profit, prompts review Watpac posts profit, prompts review Watpac posts profit, prompts review Watpac posts profit, prompts review


Staff Reporter

The company said its financial performance exceeded its own forecasts despite growing competition in the construction sector.

Watpac managing director Greg Kempton said the company’s civil and mining business had delivered a strong turnaround in performance for the period and it was placed to take advantage of future opportunities in the resource sector.

“The group’s civil infrastructure and contract mining services portfolio now has a total forward order book of approximately $750 million and contributes to more than 30 per cent of the group’s annual turnover,” Kempton said.

“Our construction business continues to perform well amidst difficult market conditions.”

Kempton said given that market conditions had not improved, the company would undertake a full strategic review of its property portfolio over the next three months.

The announcement follows a period when the company secured a $30 million debt funding capacity and announced a share buyback.

Kempton said the share buyback was meant to deliver enhanced value to the company’s investors.

“Pleasingly, the Watpac directors have reaffirmed the December 2011 profit guidance which indicated that we expect full year underlying operating net profit after tax to be at least 20 per cent above that recorded in the 2011 financial year,” Kempton said.

Watpac’s FY2011 NPAT came in at $16.8 million following unseasonal wet weather on the east coast of Australia which impacted the construction industry.

The company’s order book came in at $1.42 billion for the period.

Its construction, civil and mining and specialty services divisions were collectively awarded contracts worth nearly $400 million for the period.

This story first appeared on ILN's sister publication ConstructionIndustryNews.net.