22 February 2013

Opus International Consultants (Opus) had, in many respects, a very good year in 2012, with revenue up, some important major project wins and strong progress on numerous improvement and business development initiatives.

“Growth in Operating Revenue was pleasing, up by 3.6% to $407.5m, but the challenging conditions in some markets were reflected in a 2.4% reduction in EBIT to $30.1m,” said Chairman Kerry McDonald. “NPAT was $23.4m, down 4.6% but after removing the effect of the prior year R&D tax credit, NPAT was up 1%.

“While the on-going, serious fiscal and other difficulties in our main market economies are of concern,” said Mr McDonald, “the Group is now achieving real momentum and progress in its comprehensive and fundamental improvement processes.”

The NZ business continued to perform strongly and achieved EBIT of $30m, a 7.9% increase on 2011. “Our strong presence in Christchurch was a contributing factor and we expect further growth as more projects come to market,” said Chief Executive, Dr David Prentice. Early successes as part of the Christchurch Central Recovery Plan include the major ‘anchor project’ to lead the consortium to deliver the design and development of the Avon River Precinct.

The operations in Canada and the UK both reported a substantial improvement. “While the UK recorded an EBIT loss of $0.6m, this was a 49% improvement on 2011, and the Canadian business improved its EBIT result by 28% to $1.3m.”

The UK team grew by over 120 staff in 2012 following the award of a long-term asset management contract with the Hertfordshire County Council. “This was a major win - one of the largest in our history, achieved in the face of continued economic uncertainty and intense competition in the Eurozone markets.”

In Australia, Operating Revenue increased 21% on the previous year to $78.5m following a series of growth initiatives. These included the successful integration of the new acquisition, Opus Rail. However, the EBIT loss of $0.9m reflects a number of one-off costs and the sharp decline of the Australian non-resource market.

While business conditions continue to be challenging, they also bring new opportunities, said Dr Prentice. “And we continue to strongly focus on delivering business improvements to increase efficiency, productivity and profitability.”

Mr McDonald announced a fully imputed Final Dividend of 3.9 cents per share and a special dividend of 1 cent per share to utilise some imputation credits at 30 cents in the dollar before the change in the rate. This brings the total Dividend for the year to 8.9 cents per share.

For further information please contact:

Dr David Prentice
Managing Director
Tel: 04 471 7022