AJ Lucas Will Have First Half Loss

  Shares in AJ Lucas Group fell more than 10% after the company told shareholders to brace themselves for disappointing half-year results.Despite saying it expected a second-half turnaround in yesterday's earning update; the company's shares hit a low of & #36;2.67 during the day, before bouncing back a touch to close at & #36;3.16, down just 2.5%.The reason for the dramatic slide wasn't hard to see: AJ Lucas warned that interim & #160;earnings before interest, tax, depreciation and amortisation & #160;for the six months to December 31 are expected to show an & #36;18 million loss. & quot;As foreshadowed in the 2009 Annual Report and November's annual general meeting, the Group has experienced a disappointing first half year, & quot; AJ Lucas said in a statement to the ASX. & quot;The legacy of management missteps from the previous financial year, delays in project timing and general business uncertainty have all affected the group's financial performance, & quot; directors told the stock exchange.The company said its EBITDA included non-recurring costs of & #36;10.1 million, and no interim dividend for the half-year was anticipated.Directors said that after a first half normalised EBITDA of a loss of around & #160; & #36;18 million, & #160;second half EBITDA is forecast at & #36;30-plus million. & #160;The operational loss of & #36;18 million & quot;has been offset by the successful sale of ATP651, adjusted for other non-operating costs, to deliver an overall EBITDA profit of & #36;42 million, & quot; directors said.Drilling revenues had been & #160;strong during the first half of the financial year, but the general market uncertainty in 2009 led to irregular work, it said. & quot;Infrastructure works on the various CSG (coal seam gas) and LNG (liquefied natural gas) projects, the division's principal domain, have been slow to start, affecting the financial results, & quot; it said.But AJ Lucas said the second half should see much stronger results, with EBITDA of more than & #36;30 million and its & quot;growing pains & quot; over. & quot;The Company's growing pains, experienced in full in calendar 2009, are behind us and we are confident of our turnaround plan, now in full operation, & quot; director said confidently. & quot;Our future prospects are very encouraging. & quot;The drilling division now has a full order book for calendar 2010 and, barring unforeseen events, will deliver a substantially improved operating result in the second half, & quot; AJ Lucas said.The & #160;construction and infrastructure divisions benefited from & #36;20 million in work to government schools, with another & #36;20 million of such work to come, it said.The company said the proceeds from the sale of the Authority To Prospect (ATP651) & quot;will return the Company & #160;to its usual trading conditions & quot;. & quot;Part of the proceeds will be used to repay debt, with the balance used for working capital. & quot;Given the improved operating outlook, the Group believes it has sufficient working capital to meet its obligations and conduct its business operations. & quot;Lucas proposes to release its results for the first half ended 31 December 2009 on & #160;February 26. & quot;  

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