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

 


Opus reports positive half year result

Opus reports positive half year result

Opus International Consultants (Opus) has reported a positive result for the first six months of 2014.

In the half-year ended 30 June 2014, revenue was $265.4m, a 25% increase over the same period last year and earnings before interest and tax (EBIT) was $14.3m, an increase of 8%. Net profit after tax (NPAT) increased by 6% to $9.9m.

“Overall, top line growth was pleasing with growth in New Zealand, UK and Canada,” said Opus Chairman, Kerry McDonald. “However, New Zealand and Australia were not immune to challenging market conditions and incurred a number of one-off costs.

“In North America, mainly Canada, EBIT increased to $3.0m and revenue to $57.4m, an almost four-fold increase on the first half of 2013, largely due to the recent acquisition of Opus Stewart Weir. Profitability in this period was impacted by the unusually harsh winter conditions but has now recovered strongly” said Dr David Prentice, Chief Executive.

“Consequently, the result includes a fair value gain on financial liabilities of $2.6m in the re-measurement of deferred consideration for the purchase of Opus Stewart Weir.”

The UK business continued its growth trajectory with an increase in revenue of 41% and EBIT of 45%. The results reflected an improved economy, a long-term contract with the Hertfordshire County Council and strong performance from Network Rail related contracts.

New Zealand performed well despite variable market conditions. Revenue increased by $6.9m to $147.9m and EBIT totalled $11.2m. “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,” said Dr Prentice.

The Australian performance reflected a general slowdown in the infrastructure and resource sectors, with revenue of $33m, a decrease of 18% and an EBIT loss of $193k.

“Growth from Opus Rail and Western Australia as well as flood recovery work in Queensland has been offset by continued weakness in the NSW commercial and building sectors,” said Dr Prentice. “The acquisition of Bowdens, a Sydney based company specialising in survey, civil engineering and water design services was completed in February and has contributed positively to business performance.”

Dr Prentice said that Opus is continuing to focus on opportunities for growth and increased productivity and profitability. “We are committed to meeting the challenges presented in an increasingly competitive market and are pursuing a number of improvement projects as well as strategic opportunities in the Middle East and North Africa, with offices now in both Dubai and Abu Dhabi. In addition, we have increased our profile in Fiji and Samoa and see these two markets as having potential for growth.”

“While there are undoubtedly still challenges ahead, the Group is progressing well with its ongoing business improvement initiatives,” said Mr McDonald.

Opus has confirmed an interim dividend of 4 cents per share, which is fully imputed.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news