Delays to weigh on Lycopodium's bottom line

LYCOPODIUM has announced a slight drop in its full-year financial guidance.
Delays to weigh on Lycopodium's bottom line Delays to weigh on Lycopodium's bottom line Delays to weigh on Lycopodium's bottom line Delays to weigh on Lycopodium's bottom line Delays to weigh on Lycopodium's bottom line

Lycopodium has worked on Newmont's Aykem project in Ghana

Staff reporter

The company had previously flagged that the 2019 financial year would result in similar figures to the prior year, which comprised revenue of A$194.6 million and a net profit after tax of $18.17 million.

Due to project delays, the engineering firm said it was now forecasting full-year revenue of $169 million and NPAT of $16.3 million.

It comes after it posted a first-half NPAT of $8.6 million on revenue of $73.1 million.

"Lycopodium retains a healthy pipeline of committed and highly prospective projects and looks forward to a high level of activity across FY20," the company said.

"We will continue to focus on the successful execution of committed work and to identify new opportunities to strengthen the project pipeline moving forward."

Recent contracts wins for Lycopodium in the resources space include the engineering and supply contracts for Perseus' Yaoure gold project in Cote d'Ivoire and the EPCM work for West African Resources' Sanbrado project in Burkina Faso.

Hartleys maintained a buy rating for Lycopodium and lowered its target price by 5c to $5.75.

Lycopodium closed 4.7% lower yesterday at $4.48, valuing the company at $178 million.

 

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