Watpac clears the decks after year company 'had to have'
The group has reported an after-tax loss of $4.7 million in 2012-13, which comes after a $50.2 million loss the previous year. There will be no full-year dividend.
Watpac management, which characterised the last financial year as a period of "consolidation and organisational reform", blamed the loss on costs associated with closing civil operations in Queensland and Victoria and nearly $11 million in property impairments.
Chief executive Martin Monro said it was the year Watpac "had to have" to improve chances of a return to profitability in financial year 2013-14.
"The work that's been done has been difficult, challenging and absolutely costly in a return-to-shareholder sense," he said.
"We said a year ago we needed to get our operating overhead costs down, exit non-performing business units and sell non-core property assets and pay down property debt. The good news is we have achieved all those things."
Mr Monro said the civil operations in Queensland and Victoria had been making "reasonably significant losses" in recent years and the company realised it was not able to operate effectively in regional civil engineering projects in those areas.
Watpac's current major projects include a $600 million residential complex in Sydney's Central Park precinct and a $52 million municipal building for the City of Greater Dandenong.
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Watpac said the loss was driven mainly by costs from closing civil operations in Queensland and Victoria and by nearly $11 million in property impairments, even though the group sold more than $120 million in property assets and paid down property-related debt during the year.
Watpac reported an after-tax loss of $4.7 million in 2012–13, following a much larger $50.2 million loss the previous year.
No. Watpac confirmed there will be no full-year dividend for the 2012–13 financial year.
Management said it has reduced operating overheads, exited non-performing business units, sold non-core property assets, paid down property debt, and closed regional civil operations that were loss-making—actions it described as part of a year of consolidation and organisational reform.
Watpac's CEO said the civil operations in Queensland and Victoria had been making "reasonably significant losses" in recent years, and the company concluded it could not operate effectively in regional civil engineering projects in those areas.
Watpac sold more than $120 million in property assets over the financial year and used the proceeds to pay back all of its property-related debt.
According to the company, current major projects include a $600 million residential complex in Sydney's Central Park precinct and a $52 million municipal building for the City of Greater Dandenong.
CEO Martin Monro said 2012–13 was "the year Watpac had to have" to improve the chances of returning to profitability in 2013–14, noting the restructuring work was difficult, costly and has been completed to position the business for a recovery.
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