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Annual Report/Top 20/Financial Statements

Document date:  Fri 19 Nov 1999
Published:  Fri 19 Nov 1999 09:41:38
Document No:  155264
Document part:  A
Market Flag:  N

HOMEX - Perth                                                         

PCH Group Ltd has reported as net profit for the half year ended 
31/12/1997 of $237,064 (1996: $361,941).  Sales revenue increased 
from $4,262,373 to $7,421,350 for the half year.

The Company's involvement in the Collie Power Station project 
contributed approximately $2.6 million to revenue in the half year, 
however, the due to cost overrun problems and disputed claims which 
occurred towards the end of the project, substantially less profit 
than expected was recorded.  The Company is in negotiations with its 
clients concerning claims for variation work performed.

The Collie project was significant as it demonstrated the Company's 
capacity to successfully complete large scale projects.  The Company 
met its milestone dates without any major safety or industrial 
issues, key factors sought by major contractors.  The credibility 
and goodstanding gained from the Collie project now position the 
Company to capitalise on further opportunities in this field.

The Company invested significant resources in developing and 
expanding its capabilities in the oil and gas sector in Australia 
and Asia, the costs for which were incurred during the half year.  A 
number of opportunities are under review in this sector, with the 
company's objectives being to further diversify and build on the 
quality of earnings and earnings per share growth potential.

During the half year the Company continued its investment 
informalised safety systems.  It also achieved a significant 
milestone in obtaining formal third party quality assurance of its 
systems to ISO 9002.

With encouraging activity levels are being experienced, particularly 
in the housing resources and oil and gas sectors, the Directors look 
forward to the future with confidence.

For further information contact JD Cullen on (08) 9370-4425