Opus International first-half profit rises 6% on Canada contribution
By Jonathan Underhill
Aug. 18 (BusinessDesk) - Opus International Consultants, the engineering firm, reported a 6 percent gain in first-half
profit, reflecting the contribution from the Stewart Weir business acquired in 2013, which drove a jump in earnings in
Canada.
Profit rose to $9.9 million in the six months ended June 30, from $9.4 million a year earlier, the Wellington-based
company said in a statement. Revenue jumped 25 percent to $265 million million. The shares fell 6.6 percent to $1.70
after the results, which were just shy of First NZ Capital's profit forecast of $10 million.
Opus agreed to pay as much as C$90 million for engineering and environmental advisers Stewart Weir last year, including
C$40 million of performance-based payments. The acquisition made Canada the company's second-biggest market after New
Zealand, where Opus has one of four mandates to lead design the Christchurch rebuild.
Total revenue from North America, mainly Canada, climbed almost four-fold to $57 million, and earnings before interest
and tax jumped 289 percent to $3 million, of which $2.3 million was the Stewart Weir contribution. The result includes a
fair value gain on financial liabilities related to the Stewart Weir acquisition.
In New Zealand, revenue rose about 5 percent to $147.9 million while Ebit declined 5 percent to $11.2 million in what
the company described as "variable market conditions."
"We retain a strong position in Christchurch and have secured significant new contracts such as the five-year Wellington
Region Network Outcome contract for the NZ Transport Agency," chief executive David Prentice said.
Revenue in the UK climbed 41 percent and earnings rose 45 percent to $400,000, which Opus said reflected an improving UK
economy, a long-term contract with the Hertfordshire County Council and a strong performance from contracts related to
Network Rail.
In Australia, revenue fell 18 percent to $33 million, for an Ebit loss of $193,000, which it attributed to a general
slowdown in the infrastructure and resource sectors."
The company will pay a first-half dividend of 4 cents a share, fully imputed.
(BusinessDesk)