The Avon River Precinct featured in World Landscape Architecture Magazine. Click here to read more.
Opus International Consultants (Opus) has reported a positive result for the first six months of 2014. In the half-year ended 30 June 2014, revenue was $265.4m, a 25% increase over the same period last year and earnings before interest and tax (EBIT) was $14.3m, an increase of 8%. Net profit after tax (NPAT) increased by 6% to $9.9m.
“Overall, top line growth was pleasing with growth in New Zealand, UK and Canada,” said Opus Chairman, Kerry McDonald. “However, New Zealand and Australia were not immune to challenging market conditions and incurred a number of one-off costs.
“In North America, mainly Canada, EBIT increased to $3.0m and revenue to $57.4m, an almost four-fold increase on the first half of 2013, largely due to the recent acquisition of Opus Stewart Weir. Profitability in this period was impacted by the unusually harsh winter conditions but has now recovered strongly,” said Dr David Prentice, Chief Executive. “Consequently, the result includes a fair value gain on financial liabilities of $2.6m in the re-measurement of deferred consideration for the purchase of Opus Stewart Weir.”
The UK business continued its growth trajectory with an increase in revenue of 41% and EBIT of 45%. The results reflected an improved economy, a long-term contract with the Hertfordshire County Council and strong performance from Network Rail related contracts.
New Zealand performed well despite variable market conditions. Revenue increased by $6.9m to $147.9m and EBIT totalled $11.2m. “We retain a strong position in Christchurch and have secured significant new contracts such as the five year Wellington Region Network Outcome Contract for the NZ Transport Agency,” said Dr Prentice.
The Australian performance reflected a general slowdown in the infrastructure and resource sectors, with revenue of $33m, a decrease of 18% and an EBIT loss of $193k. “Growth from Opus Rail and Western Australia as well as flood recovery work in Queensland has been offset by continued weakness in the NSW commercial and building sectors,” said Dr Prentice. “The acquisition of Bowdens, a Sydney based company specialising in survey, civil engineering and water design services was completed in February and has contributed positively to business performance.”
Dr Prentice said that Opus is continuing to focus on opportunities for growth and increased productivity and profitability. “We are committed to meeting the challenges presented in an increasingly competitive market and are pursuing a number of improvement projects as well as strategic opportunities in the Middle East and North Africa, with offices now in both Dubai and Abu Dhabi. In addition, we have increased our profile in Fiji and Samoa and see these two markets as having potential for growth.”
“While there are undoubtedly still challenges ahead, the Group is progressing well with its ongoing business improvement initiatives,” said Mr McDonald.
Opus has confirmed an interim dividend of 4 cents per share, which is fully imputed.
For further information please contact:
Dr David Prentice
Chief Executive and Managing Director
Tel: 04 471 7022
Opus has been honoured at the Association of Consulting Engineers (ACENZ) 2014 INNOVATE NZ Awards. The ACENZ Innovate Awards attract outstanding and innovative projects from all engineering disciplines and recognise the valuable contribution that engineers make to developing and maintaining sustainable infrastructure in New Zealand.
Opus' Global Asset Management team members, Anna Robak and Tony Porter explain why New Zealand is seen as one of the leading forces of asset management in the latest Insight magazine. Click here to view.
Warren Bird, Work Group Manager - Water Resources won Best Paper at the IPWEA Conference. Warren's paper outlines findings from his team’s international review of safety risks posed by stormwater assets and the subsequent development of a GIS-based tool for identifying and scoring risks posed to members of the public.
Mike Dunn, Principal Fire Engineer received an Annual Meritorious Service Award – the Committee of the Year Award, as a member of the P4541 Automatic Fire Sprinkler Systems Committee. The award recognises the Committee’s reputation as a group of individuals who operate as a team drawing on the wisdom, technical skills, and talents of each member, and that works towards common goals.
The Opus brand was awarded a silver Graphis Award. The awards recognise published works from some of the best talent in design, advertising, and photography and are a bastion of excellence in design and visual imagery. Opus will be included in the resulting Graphis Design Annual.
Simon Bush, Principal Engineer - Structures Asset Management won the Hynds’ Best Paper at the IPWEA conference. His paper used a SimCity analogy, calling for asset managers to model service users and decision makers as well as assets, and his proof of concept showed how freight hauliers might change their routes and, in turn express dissatisfaction with their service provider based on reduced bridge reliability.
Opus International Consultants has officially opened its new research and training centre in Petone, Wellington, with the Prime Minister, Rt. Hon. John Key, flicking the switch on its brand new wind tunnel to mark the occasion.
Dr Anna Robak's presentation was judged the best at the Asset Management Council’s AMPEAK (Asset Management Promote Educate Assist Knowledge) annual conference, held in Australia. Her presentation, called “The uncertain future: Planning for alternate realities”, focused on incorporating human behaviour into infrastructure strategies. Anna developed a simple model that could help explain why people might react in unexpected ways when they are faced with changes in service provider, service provision mechanism, or charging mechanisms.