Empired loses out on Main Roads works

Shares in Empired fell as much as 20.5 per cent today, after the company announced it would not have its contract extended for the provision of ICT services for Main Roads Western Australia.

Empired’s current contract with Main Roads was extended until August this year, and in a statement the company said that not being selected as preferred bidder for ICT infrastructure and systems works until 2023, would be expected to equate to a $10 million loss in revenue for the 2020 financial year.

This is set to have an impact on underlying earnings before interest, tax, amortization and depreciation of between $1.5 million and $2 million.

Empired secured its current Main Roads contract in October 2013, which had an estimated value of $48 million over five years.

Empired managing director Russell Baskerville the company was extremely disappointed by the outcome, which would see it become the reserve bidder for the contract.

"However we respect Main Roads’ decision and will work closely with them and the service provider to ensure a smooth transition of service,” he said.

“We remain steadfast in our strategy with an outstranding pipeline of large strategic contracts to contest throughout the 2020 financial year and a high degree of confidence in our growth prospects.

Shares in Empired were trading at 31 cents each at 12.15pmAEDT.