HWE heads down profit path

HENRY Walker Eltin chief Bruce James says 2005 will mark the beginning of the company's
HWE heads down profit path HWE heads down profit path HWE heads down profit path HWE heads down profit path HWE heads down profit path

Bruce James.

Emily Roberts

He said the company remained on track to lift revenue by 10% next year and its earnings before interest and tax margin by 25% in both 2005 and 2006.

"The company now has a solid work-on-hand profile to 2009 and beyond, a stronger balance sheet, excellent people and a good deal of rigour in its processes and systems at operating level," James said.

"While tender activity is high, we have experienced an increase in negotiated contracts with long-term clients. This reflects an industry that is keen to begin, maintain or increase resources production with the least possible disruption and time spent on the bid process."

HWE delivered a pre-tax profit of $11.2 million for 2004, including a retrospective provision of $2 million to cover debts owed by failed gold and tantalum producer Sons of Gwalia.

It began the 2005 fiscal year with almost $1.1 billion of work at hand, and a further $800 million has been booked.

As well as strong contributions from the construction and mining industries, growth was also forecast for the water, wastewater, oil and gas, pulp and paper, power generation, marine infrastructure and gas pipeline sectors, he said.