AusGroup remains in the red as revenues go down 39%
This quarter’s results are weak.
AusGroup 4Q14 results were weak with revenue down 39% y-o-y to $56m. Though
the company reported a net profit of $2.56m, we note that it remains in a net loss position as this profit was driven by $6.77m of asset sale gains.
A report by OSK-DMG reveals that for FY14, segment EBITDA margins for the Projects and Fabrication were negative-57% and negative-5%. The Integrated Services segment fared better with EBITDA margin of 6.6%. Segment losses/profits before tax for these three divisions were negative.
In a media release by RHB, chief executive officer Stuart Kenny said: “I’m pleased to report the Group’s net profit margin again expanded during the period, continuing a steady improvement following the losses recorded in Q1. We expect to further increase net margin as we simplify the structure of the Group.”
Mr Kenny said: “Whilst we are disappointed in the full year result, we are pleased with the initial indications that the strategic review and restructuring that have occurred during the year are starting to show tangible results. We have rebuilt the order book and the financial position of the Group over the last nine months and look forward to continuing that momentum into FY2015 on the back of the opportunities arising in the LNG and maintenance sectors.”