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Restructuring costs hit Coffey results

10 Aug 11 Australia's Coffey International has announced underlying earnings before tax ahead of earlier guidance but an overall loss resulting from charges and restructuring costs.

The underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the 2011 financial year was AU$32.3m (£20.1m), ahead of guidance provided on 8 June of between AU$29m and AU$32m.

The financial year resulted in a reported EBITDA loss of AU$39.7m with impairmaent charges and non-reucrring restructuring costs of $72m included in the results.

New managing director John Douglas, who started on 1 March, said: “As a result of the strategic review, impairment charges and further restructuring costs have been recognised in this result. This has reduced our cost base and streamlined the organisation, positioning us to achieve a solid profit next year.”

Net operating cash outflow of AU$4.9m was impacted by reduced profitability and payment of restructure costs. Net debt increased by AU$20.7m to AU$121.2m.

Fee revenue of AU$423.6m was down 11% on last year driven by the completion of key projects, a re-focused project management Business and changes in foreign exchange rates. 

“I am pleased with the prospects of the business for next year," said Douglas. "Coffey has loyal customers who value the services Coffey provides and a great employee-base with very good technical expertise. I look forward to overseeing the direction of Coffey in the coming year confident that the outcomes of the strategic review will place Coffey in the best position to capture opportunities in our chosen markets.”  

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