Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Opus annual profit slips on rising tax, interest costs

Opus annual profit slips on rising tax, interest costs; trims dividend as debt mounts

By Paul McBeth

Feb. 10 (BusinessDesk) - Opus International Consultants, the engineering firm with one of four mandates to lead design the Christchurch rebuild, reported a 2.6 percent decline in annual profit as it dealt with rising interest costs and a bigger tax bill, and trimmed its dividend payment while taking on more debt in the year.

Net profit fell to $22.8 million, or 15 cents per share, in the 12 months ended Dec. 31, from $23.4 million, or 16 cents, a year earlier, the Wellington-based company said in a statement. Opus’s interest costs rose 28 percent to $3.7 million in the year, while its tax expense climbed 36 percent to $10.2 million. Revenue rose 12 percent to $462.9 million.

Earnings before interest and tax gained 14 percent to $34.3 million, ahead of First NZ Capital’s forecast EBIT of $31.8 million.

“Despite ongoing constraints on local government spending, business confidence is rising sharply and indicators point to a range of opportunities in the marketplace,” chief executive David Prentice said. “We need to be nimble and astute to ensure we realise these while also driving continuous, improvement in all aspects of the business.”

The board declared a final dividend of 3.9 cents per share, payable on April 1 with a record date of March 18, down from 4.9 cents a year earlier. That takes the annual return to 7.9 cents, below First NZ’s forecast of a 9-cents-per-share dividend.

The bigger retention of earnings lifted Opus’s equity to $134.2 million as at Dec. 31 from $122.8 million a year earlier, keeping a lid on the company’s gearing which rose as a result of its acquisition of Canada’s Stewart Weir last year.

Opus’s debt to equity ratio rose to 149.7 percent as at Dec. 31 from 109 percent a year earlier. The company had total liabilities of some $201 million as at Dec. 31, from $133.8 million at the end of 2012.

The company’s shares fell 3.3 percent to $2.08 today.

Opus’s New Zealand unit reported a 1.1 percent lift in revenue to $285.5 million while EBIT fell 12 percent to $26.9 million. The UK unit boosted sales 59 percent to $39.2 million, and turned profitable on an EBIT basis with earnings of $635,000.

The Australian business showed a 3.3 percent fall in sales to $75.9 million, while turning an EBIT profit of $656,000 compared to a loss of $897,000 a year earlier. The Canadian unit, which incorporated the new Stewart Weir business, more than doubled sales to $58.9 million, while EBIT surged 375 percent to $6.1 million.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news