Half-year results show Opus International Consultants’ performance continues to improve, with the New Zealand business led by a buoyant transport sector.
It’s now working with a consortium on the set-up phase of the Northern Corridor Improvements Project in Auckland for the NZ Transport Agency – providing better links for State Highway 1 travellers and improving North Shore transport options for freight, cars, cyclists and pedestrians.
Opus is also continuing work to support the Kaikoura community to restore its transport links, especially along SH1 in the South Island.
Net profit after tax (adjusted) was $6.2 million, up from $0.9m in the first half of 2016.
Operating earnings before interest and taxes (EBIT) was $11.4m, up from $2.5m in the comparable prior period.
Group revenue was $226.8m, down 4.2% on the first half-year of 2016 but flat on a constant currency basis. Cash flow from operations, at $18.2m, was the highest half-year result since Opus became a listed company.
Chairman Keith Watson says the continuing improvement reflects intensive work on the company’s new strategy, as well as flow-on effects from increased global infrastructure spending.
Watson, who officially became chairman on August 1, acknowledges the significant contribution of predecessor Kerry McDonald in developing the new strategy which focuses on three global market sectors – transportation, water and buildings.
“The strategy is driving Opus’ improved financial performance during a period of difficult operating conditions,” Watson says. “In a competitive global market, focusing on the three market sectors has enabled us to leverage our expertise for clients no matter where they are. We have become more agile and effective, more focused on human-centred design and innovation, and we are developing stronger alliances.”
Opus chief executive officer Dr David Prentice says the New Zealand business continues to be very strong, delivering $140.6m in revenue and an operating EBIT of $18.5m, led by a buoyant transport sector.
Conditions in Australia remain trying and the business recorded revenue of $21.0m and an operating EBIT loss of $2.2m.
“Importantly, the outlook for the global infrastructure market remains strong with governments in New Zealand, Australia, UK and North America allocating additional expenditure to infrastructure,” Prentice says.
Experienced financial services leader Ian Blair is now Australia and New Zealand managing director.
