Opus reports positive half year result
Opus International Consultants (Opus) has reported a positive result for the first six months of 2014.
In the half-year ended 30 June 2014, revenue was $265.4m, a 25% increase over the same period last year and earnings
before interest and tax (EBIT) was $14.3m, an increase of 8%. Net profit after tax (NPAT) increased by 6% to $9.9m.
“Overall, top line growth was pleasing with growth in New Zealand, UK and Canada,” said Opus Chairman, Kerry McDonald.
“However, New Zealand and Australia were not immune to challenging market conditions and incurred a number of one-off
costs.
“In North America, mainly Canada, EBIT increased to $3.0m and revenue to $57.4m, an almost four-fold increase on the
first half of 2013, largely due to the recent acquisition of Opus Stewart Weir. Profitability in this period was
impacted by the unusually harsh winter conditions but has now recovered strongly” said Dr David Prentice, Chief
Executive.
“Consequently, the result includes a fair value gain on financial liabilities of $2.6m in the re-measurement of deferred
consideration for the purchase of Opus Stewart Weir.”
The UK business continued its growth trajectory with an increase in revenue of 41% and EBIT of 45%. The results
reflected an improved economy, a long-term contract with the Hertfordshire County Council and strong performance from
Network Rail related contracts.
New Zealand performed well despite variable market conditions. Revenue increased by $6.9m to $147.9m and EBIT totalled
$11.2m. “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,” said Dr Prentice.
The Australian performance reflected a general slowdown in the infrastructure and resource sectors, with revenue of
$33m, a decrease of 18% and an EBIT loss of $193k.
“Growth from Opus Rail and Western Australia as well as flood recovery work in Queensland has been offset by continued
weakness in the NSW commercial and building sectors,” said Dr Prentice. “The acquisition of Bowdens, a Sydney based
company specialising in survey, civil engineering and water design services was completed in February and has
contributed positively to business performance.”
Dr Prentice said that Opus is continuing to focus on opportunities for growth and increased productivity and
profitability. “We are committed to meeting the challenges presented in an increasingly competitive market and are
pursuing a number of improvement projects as well as strategic opportunities in the Middle East and North Africa, with
offices now in both Dubai and Abu Dhabi. In addition, we have increased our profile in Fiji and Samoa and see these two
markets as having potential for growth.”
“While there are undoubtedly still challenges ahead, the Group is progressing well with its ongoing business improvement
initiatives,” said Mr McDonald.
Opus has confirmed an interim dividend of 4 cents per share, which is fully imputed.
ENDS