SINGAPORE (Aug 25): AusGroup, the provider of integrated service solutions to the energy, industrial and mining sectors, posts earnings of A$4.6 million ($4.9 million) for the full year ended June, from a net loss of A$258.9 million a year ago.
This was mainly due to the absence of impairment charges amounting to $189.3 million in FY2016. In addition, administration, marketing and other costs fell 46.7% to A$27.3 million, from A$51.2 million a year ago.
Revenue in FY2017 fell 7.6% to A$435.0 million, from $470.8 million a year ago, following the completion of maintenance contracts last year.
Gross profit grew 29.8% to $44.7 million, on the back of a 3-percentage-point improvement in gross margin to 10.3%.
This was due to operational efficiencies that have resulted from the re-organisation of the business and improved project support.
As at end June, cash and cash equivalents stood at A$33.9 million.
“The results for the year are extremely pleasing given the challenges and complexities faced by the business during the last financial year,” says AusGroup’s managing director Eng Chiaw Koon. “The underlying results from the key contracts in the energy and process sector in Australia has enabled the business to produce sustainable results for the last three quarters.”
Looking ahead, Eng says the re-branding of the NT Port and Marine business is now producing some tangible opportunities. “It is pleasing to report that we are close to full commercialisation of the business,” he adds.
Shares in AusGroup closed flat at 5 cents on Friday.
