Sharechat Logo

Daily ShareChat: Opus

By Jenny Ruth

Friday 13th August 2010

Text too small?
 Jenny Ruth

Opus International Consultants produced better than expected revenue in the six months ended June 30 but its $10.4 million net profit was 14% below his forecast due to weaker margins in New Zealand and Australia, says First NZ Capital analyst Kar Yue Yeo.

This may be due to weaker revenue mix and delay in earnings recognition,” Kar Yue says.

The appointment of David Prentice, currently head of Opus' British operations, to replace chief executive Kevin Thompson is positive as he has been part of the company's senior team over the last seven years and will provide good continuity, he says.

“A new driver steering the car, the opportunities remain the same: based on the latest NZ government policy statement, road construction and maintenance spending is set to rise by 45% from $2 billion per annum in 2009 to in excess of $2.9 billion per annum (mid-point) by 2019,” he says.

“As NZ's largest engineering and asset management consulting group with strong expertise in the transport sector, Opus is poised to benefit from this increase.”

Opus is now hiring again “on a measured basis,” Kar Yue says.

The government is likely to make ongoing announcements of tenders for the transport sector.

Recommendation: outperform.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Opus shares rise to three-month high after buying Canadian business Stewart Weir
Opus International misses 1H profit expectations as NZ business struggles on Mainzeal, local govt spend
Opus relents on JV capital plan, vows to consult minorities over future spending
Opus International asks shareholders to approve JV with sister firm to target Middle East
Opus International JV wins 7-year contract with UK’s Hertfordshire council
Opus directors seek 12% pay rise after five years treading water
Opus lifts 1H profit by 11.5%, helped by tax gain
Opus International spends A$9 mln on Australian rail engineering consultancy
Opus International
Daily ShareChat: Opus International