Mader withdraws guidance

LABOUR hire and heavy equipment maintenance firm Mader Group has become the latest firm to withdraw its 2020 financial year guidance due to the uncertainty generated by the COVID-19 pandemic. 
Mader withdraws guidance Mader withdraws guidance Mader withdraws guidance Mader withdraws guidance Mader withdraws guidance

Mader has withdrawn its guidance.

Haydn Black

Reporter

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Just one month ago Mader declared a maiden interim dividend of A1.5c, saying it was on track to achieve the guidance it delivered at the time of its October 2019 listing: a $19.5 million net profit after tax.
 
It can no longer be confident of that. 
 
It has decided to halt global operations outside the US and withdraw its expatriate workforce from contracts in Zambia, Mongolia, Papua New Guinea and Mauritania.
 
Its non-US international division represents 5% of annual revenue.
 
In the US, the company is more exposed to impacts from the virus as it has a lower degree of client diversification, but Mader said its workforce remains "strongly utilised".
 
Mader's expat workers are expected to be utilised across its Australian operations, where it has been deemed an essential service to support the mining industry.
 
"Activity levels remain strong, in particular in the Pilbara and WA Goldfields regions," the group said.
 
It is making adaptions to rosters to account for travel restrictions where required.
 
It still sees organic growth potential in the US, and wants the company to be "in the strongest financial and operational position in this rapidly changing environment".
 
The company had hoped to generate a second half profit of $10.6 million.
 
Mader shares were untraded today. 
 
They have fallen from around $1 to 68c over the past month, during which time founder and second-largest shareholder Luke Mader has been buying additional stock, taking his stake to 24.2%.
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