Opus International lifts first half profit on NZ efficiency gains

Tuesday 18th August 2015

Opus International Consultants, the listed engineering firm, lifted first-half profit 60 percent on efficiency gains after restructuring its New Zealand office.

Net profit after tax rose to $15.9 million in the six months ended June 30, up from $9.9 million a year earlier, the Wellington based firm said. Earnings before interest and tax rose 40 percent to $20 million while sales fell 3.9 percent to $255.9 million. Last year the company reduced its leadership team to eight from 12 as part of a response to what it said was "an increasingly competitive market".

"It's pleasing to see the resulting efficiency gains, increases in productivity and higher win rates following a major restructure and ongoing performance improvements," chief executive David Prentice said. "While economic uncertainty exists in some markets, the group has responded well and continues to implement initiatives that will improve performance."

The New Zealand unit lift Ebit 34 percent to $17.6 million, while revenue slipped 2 percent to $145 million. Ebit for its UK was operations $1.4 million, while sales rose 26 percent to $33.6 million. In Canada, it turned to an operating loss of $1.2 million, after revenue fell 2 percent to $52 million, while its Australian operations also reported a loss of $2 million, as sales fell 23 percent to $26 million.

"Despite moving swiftly earlier in the year to reduce costs and drive efficiencies, Canada and Australia continue to be affected by external economic pressures," Prentice said. "Despite taking early measures to reduce cost, market contraction has been sharp. However, our actions ensure we minimise cost but maintain capability for emerging market opportunities."

The board declared an interim dividend of 4.1 cents per share, and a special dividend of 2 cents per share.

Opus shares rose 3.3 percent to $1.24.

BusinessDesk.co.nz

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