Macmahon swings to FY loss

Contractor says revenue stream at risk, margins under pressure as miners seek to slash costs.

Contractor Macmahon Holdings (MAH) has tipped a sharp fall in revenues amid "highly uncertain" operating conditions, warned its earnings stream is at risk and margins under pressure as miners seeks to slash costs. 

It came as the group swung to a full-year loss of $29.5 million, from a $56.1 million profit last year, after booking a $73.1 million loss on the sale of its construction projects to Leighton Holdings (LEI). 

Revenue also dropped, to $1.75 billion, from $1.87 billion in the prior year. 

Macmahon said revenue for 2013-14 was expected to fall to between $900 million and $1.2 billion, warning that it "remains highly uncertain due to fewer new work opportunities, the potential for scope reductions and contract deferrals by clients and increased competition within the sector". 

"Margins are also expected to be under pressure as clients seek cost reductions," the group said. 

The group will not pay a dividend for 2013.