Coffey hits revised results target
Australian consulting engineer Coffey International says that it has begun to turn around its fortunes, producing annual results in line with the revised guidance it provided in April.
It reported a loss of AU$0.5m in its earnings before interest, taxes, depreciation and amortisation (EBITDA) for the full year to 30 June 2012. This takes account of non-recurring costs, including for restructuring, totalling AU$40.2m.
Underlying EBITDA for the year was AU$39.7m, in line with guidance of AU$39m to AU$41m. Coffey indicated in April that it had a softer than expected third quarter and this impacted its ability to achieve its original EBITDA guidance for the financial year of AU$45m. The company said that this softness was due to delays on a large contract, since secured, and to the impact of significant staff turnover during a time of growing revenues. Staff turnover has fallen by 9% in absolute terms since May 2011 and Coffey expects this to have a very positive impact on operational efficiencies in the 2013 financial year.
Managing director John Douglas said: “The final quarter saw a return to our expected profit momentum and as a result, we are very pleased to see underlying EBITDA from continuing businesses improve 20% against FY2011, along with substantially reduced debt and much improved operating cash flow.
“The turnaround we have been working on for the past year is showing results. We now have a refocused organisation that is delivering to the targets we have set and which has a healthy level of revenue for FY2013 already contracted.”
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This article was published on 8 Aug 2012 (last updated on 8 Aug 2012).