Engineering and construction company Paladio Group has forecast full-year net profit to reach up to $12 million before any write down associated with the collapse of Windimurra Vanadium.
Engineering and construction company Paladio Group has forecast full-year net profit to reach up to $12 million before any write downs associated with the collapse of Windimurra Vanadium.
The Belmont-based group said contracts secured in late 2008 have helped to boost forecast revenue for the 2009 financial year to between $300 million and $330 million.
Net profit after tax is expected to reach between $9 million and $12 million, before write-downs.
It expects a projected cash position of around $20 million.
Project delays hampered Paladio's 2008 financial year net profit which reached $55,000 while revenue was reported at $128 million.
However, Paladio today warned that its final full-year profit may be impacted by a write down for non-payment of funds owing for work at Windimurra Vanadium's namesake project in the Mid West.
"While the amount of any write down cannot be accurately determined at this time, the maximum further write down is $2.9 million after tax," Paladio said in a statement.
Earlier this year, Paladio warned of a possible $4 million hit from suspension of works at the project.
Managing director Victor Kuss said Paladio has trade credit insurance cover which could reduce the debt figure from Windimurra.
Paladio's order book for the 2010 financial year is around $152 million and the pipeline of current and potential tenders is more than $500 million.
Shares in Paladio were up four cents to 31 cents at 15:30 AEST.
The announcement is below:
Paladio Managing Director, Victor Kuss said work on larger projects won by the company in late 2008 are now underway and are contributing significant revenue gains in the second half of the current financial year.
Paladio Group Limited (Paladio) (ASX: PDO) wishes to advise the market that the company's forecast total revenue for the financial year ending 30 June 2009 of $300 million to $330 million is expected to result in a full year Net Profit After Tax of between $9 million to $12 million (before any write down of funds owed from the Windimurra project) and a projected cash position of approximately $20 million.
As previously announced, Paladio's final full year profit may be impacted by a potential write down for non-payment of funds owing for work completed for Windimurra Vanadium Limited. While the amount of any write down cannot be accurately determined at this time, the maximum further write down is $2.9 million after tax.
Mr Kuss said Paladio has trade credit insurance cover which could reduce the above number should any debt from the Windimurra project be recoverable under the policy. The company has lodged a claim.
Strong Outlook for 2010
Paladio's current order book for the 2009/2010 financial year is approximately $152 million (including a letter of intent for $57 million of which $10 million has been approved to proceed) and the company has a pipeline of current and potential tenders in excess of
$500 million.
Mr Kuss said the foundation of a solid order book and robust cash position means Paladio is well positioned to deliver another strong performance in 2009/2010.
