The 2013 half-year report of engineering, construction and project management company Ausenco makes painful reading. Total revenue fell 17 per cent year-on-year to $262.7 million, as sales from the world’s fastest growing regions, the Asia Pacific and Africa, slumped by nearly a third. The company faced increased competition, resulting in some of its contracts being renegotiated. That resulted in less revenue, reduced margins and less work.
As a consequence, Ausenco’s cash flow slumped along with net profit. Earnings before interest, tax, depreciation and amortisation plunged 73 per cent to $8.5 million. Net profit fell 83 per cent to $3.4 million.