KEY POINTS:
Infrastructure consultant Opus International Consultants has exceeded expectations with increased revenue and profits, up around 25 per cent for 2008.
Revenue was $371.5 million, up 25.4 per cent on 2007, and the net surplus after tax was $17.5 million, up 23.4 per cent, for the year ended December 31, 2008, the company announced to the stock market today.
"The results exceed our prospectus forecasts, both in terms of revenue and profitability," said Opus chairman Kerry McDonald.
Opus, formed when the Ministry of Works and Development was privatised in 1988, was floated in 2007.
Highlights of the 2008 year include:
- Operating revenue increased by $75m (25 per cent). - Pre-tax profit increased by $4.4m (22 per cent).
- Net surplus after tax increased by $3.3m (23 per cent).
- Exceeded operating revenue and net surplus after tax prospectus forecasts by 18 per cent and 10.5 per cent respectively. - Earnings before interest, tax, depreciation, and amortisation (Ebitda) grew by 28.4 per cent to $30.5m and exceeded forecast Ebitda by 9.4 per cent.
"It is a very pleasing result, which follows an extremely busy year, and a year that also saw a sharp economic downturn around the world," McDonald said.
"Whilst our financial results were ahead of forecast, the directors consider that in the current economic environment it is prudent to maintain dividend payments in line with forecast."
Opus would pay a final dividend of 3.1 cents per share, which is fully imputed, said McDonald.
"This brings the total dividend for the year to 5.7 cents per share."
During 2008 Opus acquired the Joynes Pike Group in the United Kingdom and Project Engineering Limited in Canada. Together these acquisitions contributed revenues of $18.7m.
However, due to the economic downturn they contributed a loss after tax of $1.7m during 2008.
In the United Kingdom the more serious effects of the global recession and the depressed market made for difficult trading conditions, resulting in a post-tax loss of $4m in 2008, he said.
However, it was also pleasing to note that Opus was ranked 123rd in terms of revenue in the 2008 Engineering News Record top 150 global infrastructure design companies, up from 134th in 2007, he said.
Business acquisitions in the United Kingdom and in Canada increased Opus' total staff from 2236 to 2563, and it now operated from 81 offices world-wide.
"The outlook for global economies is unusually uncertain and is likely to be challenging. While Opus is exposed to this, we do have an advantage with our long-established client relationships, strong portfolio of capabilities, our excellent people and an involvement in many market sectors.
"A number of these sectors are likely to benefit from increased expenditure in infrastructure and our expertise aligns well with the thinking and economic objectives of the governments in both New Zealand and Australia."
- NZPA
