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

 


Opus International 1H profit rises 6% on Canada contribution

Opus International first-half profit rises 6% on Canada contribution

By Jonathan Underhill

Aug. 18 (BusinessDesk) - Opus International Consultants, the engineering firm, reported a 6 percent gain in first-half profit, reflecting the contribution from the Stewart Weir business acquired in 2013, which drove a jump in earnings in Canada.

Profit rose to $9.9 million in the six months ended June 30, from $9.4 million a year earlier, the Wellington-based company said in a statement. Revenue jumped 25 percent to $265 million million. The shares fell 6.6 percent to $1.70 after the results, which were just shy of First NZ Capital's profit forecast of $10 million.

Opus agreed to pay as much as C$90 million for engineering and environmental advisers Stewart Weir last year, including C$40 million of performance-based payments. The acquisition made Canada the company's second-biggest market after New Zealand, where Opus has one of four mandates to lead design the Christchurch rebuild.

Total revenue from North America, mainly Canada, climbed almost four-fold to $57 million, and earnings before interest and tax jumped 289 percent to $3 million, of which $2.3 million was the Stewart Weir contribution. The result includes a fair value gain on financial liabilities related to the Stewart Weir acquisition.

In New Zealand, revenue rose about 5 percent to $147.9 million while Ebit declined 5 percent to $11.2 million in what the company described as "variable market conditions."

"We retain a strong position in Christchurch and have secured significant new contracts such as the five-year Wellington Region Network Outcome contract for the NZ Transport Agency," chief executive David Prentice said.

Revenue in the UK climbed 41 percent and earnings rose 45 percent to $400,000, which Opus said reflected an improving UK economy, a long-term contract with the Hertfordshire County Council and a strong performance from contracts related to Network Rail.

In Australia, revenue fell 18 percent to $33 million, for an Ebit loss of $193,000, which it attributed to a general slowdown in the infrastructure and resource sectors."

The company will pay a first-half dividend of 4 cents a share, fully imputed.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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