Brierty posts $50.4m loss
Embattled contractor Brierty has unveiled a massive full-year net loss of $50.4 million after enduring a big blowout on a Main Roads WA contract to upgrade the North West Coastal Highway.
The bottom-line loss was also dragged down by a $23.1 million after-tax impairment on the value of plant and equipment and the non-recognition of a deferred tax asset totalling $10.4 million.
Brierty said the result included a provision for future losses associated with the North West Coastal Highway project through to completion in the coming months.
The fallout from the troubled highway contract cost former Brierty boss Peter McBain his job earlier this year.
He has since been replaced by chief operating officer Ray Bushnell.
The company’s underlying net loss after tax was a slightly more respectable $16.9 million.
The result came on the back of revenue of $211.3, down from $292.4 million the previous year.
Brierty chairman Dalton Gooding said it had been a challenging year for the company.
“We have been very disappointed with the North West Coastal Highway project and the adverse financial impact it has had on the business,” he said.
“This project, which is well progressed towards completion, has masked the solid performance Brierty achieved at our $300 million mining project at Western Turner Syncline, our major land development project at Mitchell Creek Green in the Northern Territory, and other smaller civil projects during the year.
“Importantly, we have learnt lessons from the highway project in adjusting our business strategy and have also responded by achieving significant cost efficiencies across the business.
“The market remains competitive but Brierty has continued to be successful in winning new work, such as a $30 million contract awarded by Newmont Mining earlier this month for civil works at the Boddington gold mine.
“We also remain in active discussions on the Great Eastern Highway contract dispute which has been the subject of formal mediation in full-year 2016.
“Brierty has a quality order book in place ($286 million), which provides the business with a strong platform for full-year 2017.
“We are appreciative of the support that our bank has given the business during the past challenging year and look forward with cautious optimism to improved results in full-year 2017.”
The company will not pay a final dividend.
Brierty said it would release its full audited results by September 30.