A wild day for shares in rail and infrastructure services company, United Group, with a strong rise, and then a very sharp fall in a day when the overall market finished around 1% higher.
United's shares ended 32c lower at $17.35, despite what appeared to be a solid result and an equally solid forecast for the 2008 year.
The catalyst seems to have been the company's 2007 profit report which was accepted at first, especially with the forecast of a "record 2008" and then second thoughts in the afternoon and suggestions it wasn't quite the quality result the market had first thought.
The shares rose more than 6% in the morning after the result was released before trading opened.
The shares opened at $18.45 and hit a high of $18.79 after the company reported a net profit result of $92.7 million, up 18%.
Net earnings rose from $78.7 million in the 2006 year and while earnings before interest and tax (EBIT) jumped 24% to $148.6 million ($166 million prior a charge for the rail partnership).
The shares hit the day's high of $18.45 in the 45 minutes of trading, before steadying and then falling.
That $18.79 was a new intra day high after they hit a record $18.60 last month.
United directors said the company expected another strong year in 2008, through both organic growth and acquisitions.
The company's chief executive, Richard Leupen, was confident about the outlook in his statement accompanying the profit figures.
"United enters 2008 well positioned to capitalise on the opportunities in global property services and essential infrastructure," Mr Leupen said.
"We expect 2008 to be another year of strong growth supported by favourable market conditions, the continued trend in outsourcing in all major markets, and increased spending on essential infrastructure.
"United Group's revenue from international markets is expected to be over $1 billion, with total group revenue likely to approach $4 billion."
Mr Leupen said the company expected growth across all its market sectors, "with organic growth and acquisitions continuing to be United Group's major drivers".
EBIT from the group's infrastructure division grew by 38% to $49.8 million, while its rail arm grew earnings 29% to $63.6 million.
The resources division saw EBIT jump by 36% to $41.5 million, and the United Group Services' earnings rose 50% to $35.3 million.
Mr Leupen said this is the sixth consecutive year that United Group has delivered such growth, and it has again been driven both organically and through the performance of the businesses the company have acquired.
"United Group continues to benefit from growth in spending by governments and the private sector on essential infrastructure such as water, energy and transport, as well as the continued trend to outsource non-core functions such as property services.
"The underlying strength of these markets ensures United Group can continue to grow over the longer term."
United declared a fully franked dividend of 28 cents a share, taking total dividends for the year to 48 cents. That was up 9% on last year.
