By Phil Boeyen, ShareChat Business News Editor
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Monday 6th August 2001 |
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For the six months ended June WAM made $6.72 million, a marginal increase on last year's interim result of $6.69 million. Sales also rose marginally, to $68.65 million from $67.9 million.
The company says waste and recyclable volumes have shown little growth over the same period last year, particularly in Auckland, and the outlook for the second half of the year suggests business will remain quiet.
In February the company announced it had not won any Auckland City refuse collection and disposal contracts and says the loss of that business will see second half revenue fall by around $2.5 million and net profit fall by $400,000.
Although gains are expected from recent Australian acquisitions in the second half, the company says they will be offset by the loss of the Auckland City contracts.
"Directors therefore are projecting a result for the full 2001 year that will be close to last year," WAM says in a statement.
Overall the company attributes its flat result to a sluggish economy, with construction activity significantly less than the same period last year and strong competitive activity in Auckland
It also had around $400,000 in extra operating expenses associated with developing the offshore market, and lower contributions from both Living Earth and Briteway.
Hamilton City last week confirmed Waste Management had been awarded a new 15-year collection and disposal but the impact on the company's accounts will be minimal for 2001.
An unchanged interim dividend of 2.5 cents per share has been declared, payable next month.
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