UK turnaround boosts Opus half-year

UK turnaround boosts Opus half-year

Aug. 4 (BusinessDesk) - NZX-listed engineering firm Opus International Consultants Ltd more than doubled tax-paid profit in the six months to June 30, thanks mainly to a dramatic turnaround in the fortunes of its British unit.

Opus reported net profit of $10.4 million for the half, compared with $5.1 million for the same period last year. The United Kingdom business report earnings before interest and tax of $240,000, compared with a $6.7 million loss in the comparable half last year. However, UK trading conditions remained "difficult", said chairman Kerry McDonald.

The Australian business also achieved a turnaround, reporting ebit of $1.4 million, compared with a $703,000 loss in the six months to June 2009.

Earnings continued to be driven primarily by the New Zealand unit, although ebit for the half year under review was down, at $13.6 million, compared with $14.2 million in the same half a year earlier.

Exchange rate movements also assisted the current result, with gains of $709,000 booked, compared with $987,000 in currency losses for the first half of last year.

McDonald said the outcome was "very positive", despite economic conditions in many markets constraining growth. Opus was pursuing greater collaboration and work-sharing across its locations.

Earnings per share doubled to 8 cents, and directors have declared a dividend of 3.4 cents per share, to be paid on Sept. 30.

Opus shares traded unchanged at $1.80 today, ahead of the profit announcement, which was released after close of trade.

(BusinessDesk) 17:17:27

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