Macmahon struggles in tough market
Contract miner Macmahon Holdings has pointed to a "challenging year ahead" amid increased competition for new contracts with little optimism of a turnaround.
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter your SMS code' }}
A text message with your verification code was just sent to {{user.DayPhone}}
We cannot send you a code via SMS to {{user.DayPhone}}
Hi {{ user.FirstName }}, please provide your mobile number.
{{ content.trialHeading.replace('{0}', user.FirstName) }}
We'll send you a text message with a verification code to start your free {{ '0' == '1' ? 'Eureka Report' : 'Intelligent Investor' }} 15-day trial.
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Eureka Report 15-day free trial
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Indepth analysis of ASX listed shares
- BUY, Hold and Sell Recommendations
- Ideas Lab
- Special Reports
- Alan Kohler’s Weekend Briefing
- Interviews with CEO’s & top influencers
- Money Cafe and Talking Finance
- Super Advice and Q&A with Ask Alan
The company has quit the construction sector, opting to focus solely on contract mining, when the downturn in resources prices has resulted in miners and explorers aggressively cutting costs.
At Friday's annual meeting, the company pointed to the continued volatility of commodity prices, increased competition for tenders along with margin pressure as a feature of trading conditions.
"The market is very tough and competition for new work is fierce," chief executive Ross Carroll told shareholders at the meeting, while pointing out the tender pipeline remains high at $2.5 billion.
Its caution on the outlook prompted it to maintain unchanged its fiscal 2014 revenue forecast at $900 million to $1.2 billion, even though when it released its annual report in September it said it had $900 million of work in hand, with contract renewals of $383 million playing a key role.
Even with the shift away from construction, Macmahon has an ongoing liability for projects for which warranties have been provided. It has also been hit by slow payments for mining projects, specifically the Tavan Tolgoi coal project in Mongolia.
