Melbourne-based Programmed Maintenance Services (PRG) has joined the ranks of companies hit by the downturn in resource spending.
The list continues to grow and this week we have already see a lower profit and dividend from ALS, and the ANZ Bank support the struggling Forge Group (FGE) as it battles losses in two power station contracts that could exceed $100 million. Forge reportedly can’t get a emergency fund raising away at 50c a share (last sale was $4.18, so that tells us how dire its position is).
Programmed is in a far better state than Forge.
First half profit was flat, a good outcome given a slide in revenue from the mining downturn.
Revenue was down 5% to $724 million, due mainly to reduced activity in Programmed’s resources division.
But net profit of $12.4 million for the six months to September 30, was up $100,000 from the result for the same period last year.
PRG YTD – Despite revenue fall, flat result, Programmed boosts interim dividend 20%
The company on Wednesday said an improved performance from its property & infrastructure and workforce divisions helped it maintain its profitability.
"We are pleased to have maintained profit, lowered debt and increased the dividend in challenging market conditions," managing director Chris Sutherland said.
"This result demonstrates the strength of our business model, providing services to all major sectors of the economy."
Mr Sutherland said the company expected its full year profit result to be similar to last year’s.
"Overall, weakness in some sectors is being offset by growth in other sectors and, on balance, we project for the full year, a similar net profit to FY2013, with continuing strong cash flow, lower debt and capacity to pay a similar or increased final dividend," he said.
Despite the softness of the result, interim dividend was lifted 20% to 6c a share.
The shares eased a cent to $2.95, close to the highest they have been for more than four years.
