13 August 2013

Opus International Consultants (Opus) has reported a steady result for the first six months of 2013.

In the half-year ended 30 June 2013, Opus achieved a 4% increase in revenue over the same period last year, however earnings before interest and tax (EBIT) of $13.2 million was down 8% on prior year, and net profit after tax (NPAT) of $9.4 million represented a decrease of $1.3m.

“Our overall performance is steady,” said Opus Chairman, Kerry McDonald. “Our operations in the UK, Australia and Canada have all improved on the prior year, with revenue up 20% and EBIT increasing by $2.9m.

“Economic conditions in all markets remain challenging, but the demand for asset management is steadily increasing and we are taking advantage of new business opportunities.

“The UK business increased revenue by almost 80%,” said Opus Chief Executive, Dr David Prentice. “This is a large turnaround, due mainly to a strong and growing work programme with the Hertfordshire County Council.

“In New Zealand, we have been impacted by the Mainzeal liquidation and reduced local government spending, however the Christchurch earthquake rebuild continues to gain momentum. Going forward, we see sizable infrastructure opportunities for the business including the Auckland transport network, and the energy, rural and dairy sectors.

“While headline employee costs have increased by $5.1m on the comparable prior period, this reflects the Opus Rail acquisition and the HCC contract. Underlying employee costs have remained flat.”

Dr Prentice says Opus is focused on opportunities for growth. “We continue to target opportunities in the Middle East, North Africa and Asia, and our 10-year contract with the World Bank in Liberia represents a clear commitment to increasing our presence in the region.

“While there are undoubtedly still challenges ahead, we will continue to focus on sustained investment to improve business performance,” says Dr Prentice. “Our resilient half year result underlines the company’s ability to respond to the changing economic climate. With business confidence at a five-year high, further momentum in Christchurch and significant opportunities coming to market, we are optimistic about the remainder of the year.”

Opus has confirmed an interim dividend of 4.0 cents per share, which is fully imputed.  This is slightly higher than is justified by first half profits under normal dividend policy and reflects expectation of a stronger second half.

For further information please contact:

Dr David Prentice
Chief Executive and Managing Director
Tel: 04 471 7022