Bri­erty posts $50.4m loss

Pilbara News - - News - Stu­art McKin­non

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.

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