DISAPPOINTING RESULT FOR SEDGMAN

DISAPPOINTING RESULT FOR SEDGMAN

TOUGH market conditions in the resources sector shows in Sedgman’s (SDM) half year report of $12.3 million net profit after tax, a fall of 36.5 per cent on the same period last year.

Revenue was down to $256.3 million, a 20.9 per cent decrease from the $324.1 million reported for the first half of 2011.

Sedgman shares fell 10.92 per cent following this today’s announcement, trading at $1.06 late this morning.

CEO Nick Jukes (pictured) says the disappointing result is a reflection of low commodity prices, the high Australia dollar and subsequent project deferrals.

“We have responded by reducing costs and improving efficiency, as well as renewing our focus on our diversification strategy across commodities and regions,” Jukes says.

This included a reduction to the company’s workforce, which incurred a $1.8 million redundancy payout in October.

“The next six months will be challenging for Sedgman,” Jukes says.

“However the market is showing some signs of improvement with some increases in commodity prices and opportunities emerging in the Australian market and other key regions of Africa, Asia and the Americas.”

The company’s resolution to diversify is evident in the proposed acquisition of South African based company MDM Engineering.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Former IPO hopeful Limepay acquired by Spenda at a fraction of the $43.5m invested

Former IPO hopeful Limepay acquired by Spenda at a fraction of the $43.5m invested

White-label buy-now pay-later (BNPL) company Limepay may have ...

Melbourne construction safety software group HammerTech receives $105m investment for growth

Melbourne construction safety software group HammerTech receives $105m investment for growth

HammerTech, a Melbourne-headquartered safety intelligence software ...

Here’s how to make sure Indigenous businesses keep thriving across a wide range of industries

Here’s how to make sure Indigenous businesses keep thriving across a wide range of industries

When discussing the creativity and ingenuity of Indigenous people, ...

Brisbane-based IT consultancy Exent acquired by Atturra for up to $8m

Brisbane-based IT consultancy Exent acquired by Atturra for up to $8m

Founder-led IT consultancy Exent is set to join the growing portfol...