Opus Performs Strongly

Opus International Consultants reports a good performance for 2010, despite some challenges, with Operating Profit up by 25 percent and Net Profit After Tax up by 18 percent on the previous year to $22m, on total revenue of $367m.

This was a very good result on steady revenue and cash flow, culminating in a strong year-end balance sheet, said Opus Chairman, Kerry McDonald, particularly considering the continuing impact of the Global Financial Crisis (GFC) in developed economies, which include Opus’ main markets.

“Earnings Before Interest and Tax (EBIT), lifted significantly to $31m – up 22 percent on the 2009 result,” said Mr McDonald. “Particular gains were achieved in the UK market with a positive EBIT of $0.6m representing a turnaround of $7.3m from the 2009 result. This was due to the ongoing intensive work on all aspects of the business, and was a dramatic and positive change over previous years. EBIT more than doubled in Australia to $3.7m and the New Zealand business continued its good performance with EBIT of $27.4m. Although Canada had a $0.3m negative result, this included some acquisition costs and is expected to be quickly reversed. Return on Equity for the year was 25.1 percent, slightly up on the 24.9 percent for 2009,” he said.

Opus Managing Director, Dr David Prentice said that Opus’ strong operating performance, along with the careful management of working capital and assets helped improve the company’s net cash position to a very healthy $46m.

“Our increased profitability reflected the focus on project delivery and the efforts of management and all employees to keep costs down,” says Dr Prentice. “The company also benefitted from government spending and economic stimulus initiatives in a number of markets, although this overall was slower than anticipated with some infrastructure programmes delayed.“

Mr McDonald said the Board was pleased to announce a fully imputed Final Dividend of 4.3 cents per share.

“This brings the total Dividend for the year to 7.7 cents per share, and represents a 15 percent increase of 1.0 cent per share over last year.”

“There are still some challenges ahead for different parts of the business given the economic situation. The GFC marked the end of a period of relatively stable growth for most developed economies, where many other economies are growing strongly. In addition to targeting further growth in its established markets, Opus will be looking for opportunities in developing markets. I believe Opus can respond and continue to meet the challenges ahead and I am confident we can look forward to the continued growth and success of Opus in the years ahead.”

“The Christchurch earthquake in September has clearly had a serious effect on our Christchurch team, yet their immediate response, with support from the wider Opus team was a very clear illustration of our commitment to the community, and our clients. We were able to provide immediate assessment of buildings and infrastructure, and to assist in the rebuilding and clean-up,” he said.

Dr Prentice said that yesterday’s earthquake was tragic for the City and its people but there should be no doubt of the commitment that our Christchurch team, and the whole of Opus, will put into meeting the challenges ahead.

Some key projects contracted or completed during 2010 included:

Australia
Hamilton Island Yacht Club
West Australia Wheatbelt ISA
Tennyson Reach Apartments

Canada
Stave Lake Water Supply and Treatment plant
Study of High Speed Rail, Alberta
Traffic study NE section of Alaska Highway

New Zealand
Te Rapa Bypass
Rotorua Eastern Arterial route
Waikato Expressway, Hamilton
Newmarket Station
Double rail tracking to Waikanae
Expansion of Bowen Hospital
Architectural design of a number of schools and Massey University’s Albany campus
Ashburton/Lyndhurst Irrigation Scheme

United Kingdom
Valuation of road assets
Structural design – University of Wales building, Newport campus
Structural design for a number of hospitals
Asset management of the Rochester Bridge.

ENDS

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