Annual Report/Top 20/Financial Statements
Document date:
Fri 19 Nov 1999
Published:
Fri 19 Nov 1999 00:00:00
Document No:
155264
Document part:
A
Market Flag:
N
Classification:
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 1