Opus profit takes a dive

Opus chairman Kerry McDonald

Opus International Consultants Ltd said net profit fell 44 percent to $5.1 million in the six months to June 30 from a year ago as clients were affected by the economic downturn.

Revenue rose $9.3m to $187m but expenses increased by $14.5m due to acquisitions in the UK and the cost of retrenchments.

Earnings before interest and tax (Ebit) fell to $7.4m from $12.9m last year.

The UK business reported an Ebit loss of $700,000 but the New Zealand business contributed Ebit of $14.2m and Canada contributed $600,000.

"The UK and Australian markets, where we have experienced our greatest challenges, are showing some encouraging signs and the New Zealand and Canadian markets appear to be stable," chairman Kerry McDonald said.

Key projects that Opus has been involved with in New Zealand recently include the Northern Busway in North Shore City, the Newmarket rail interchange redevelopment and a flood assessment study in Lake Taupo.

A core area of the company's expertise in Australia and Canada has been in transportation asset development and management, plus a number of water-related projects.

Opus traces its history back to the Ministry of Works. Works Consultancy Services was sold in 1996 and changed its name to Opus in 1997.

The global company has around 2500 staff in offices and laboratories throughout Australia, Canada, the United Kingdom and New Zealand.

Opus will pay an interim dividend of 2.6 cents a share on October 1.

- NZPA