MACA results in line with revised guidance

DESPITE higher revenue, contractor MACA has posted a lower half-year profit due to margin pressure and investments in new equipment.
MACA results in line with revised guidance MACA results in line with revised guidance MACA results in line with revised guidance MACA results in line with revised guidance MACA results in line with revised guidance

Staff reporter

The company had guided revenue of A$300 million, with the actual figure of $324 million 14% higher than the December 2017 half.

Two thirds of the company's revenue came from the gold sector.

EBITDA was down 27% to $27.6 million, while EBIT dropped 28% to $10.1 million.

Net profit after tax fell 33% to $8.1 million, in line with the company's revised guidance of $7-9 million.

MACA declared an interim dividend of 2c per share, fully franked, down from 3.5c.

The company had "modest" net debt of $6.5 million at December 31 due to the significant capital investment made during the half.

Cash at bank was $71.6 million.

The company's order book as of February 19 stood at $2.2 billion, which includes $530 million of work from Echo Resources and Emerald Resources, yet to be finalised.

MACA said despite a disappointing first half, it had a positive outlook for the second half due to its increased work in hand and promising project pipeline.

Full-year revenue is expected to be $640 million, up from the previous estimate of $620 million.

"The second half financial performance is expected to be stronger than that achieved in the first half as a result of improved margins," MACA said.

MACA shares dropped 1.5% to 97c yesterday, capitalising the company at just under $260 million.

Canaccord Genuity maintained a buy rating for MACA and lifted its price target from $1.23 to $1.28.

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