LogiCamms to 'break even'

Engineering services company LogiCamms has completed an $8 million capital raising to bolster its balance sheet after disclosing it would suffer a break-even result in the current half-year.

The Perth-based company told the ASX late Thursday it is no longer anticipating growth in the second half of the 2011 financial year and expects a net profit result for FY11 of $4.2 million, implying a break even result for the second half.

The company said the revision to its estimated financial performance was driven by lower work volumes at its Northern operation and recognition of additional project costs and unexpected revenue delays on two fixed price contracts.

"The break-even NPAT expected for the second half of FY11 is the product of a small number of discrete, but material issues including factors outside our control," managing director Adam Keats said.

LogiCamms' Northern operation delivered a loss in the third quarter of FY11, with the Queensland natural disasters adversely affecting work volumes, staff chargeability and subsequent delays of new contract awards.

The company also had to adjust estimated costs to complete on two of its fixed price contracts in the infrastructure sector being delivered in Queensland and Victoria.

These projects also experienced difficulties including inclement weather, schedule delays, natural disasters and cost overruns, with workflows expected to be deffered until next financial year.

LogiCamms has also announced a placement to raise $8 million through the issue of shares at $1.25 each to strengthen its balance sheet and support future project opportunities.

The placement price compared to its last closng price of $1.53 per share.

Blackswan Equities managed the placement.