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Programmed reports profits of over $12m for full year 2017

Programmed has released its results for the full year to 31st March 2017.


The company reported profit of $12.3m for the year to 31st March, compared to the $98m loss last year on the back of heavy impairments. The group reported a 21.4% increase in revenue for the year to 31st March, to $2.69 billion, despite continuing weakness in some of its markets.


Managing director, Chris Sutherland, said, “In difficult trading conditions, with continuing weakness in some of our markets, we are pleased to have completed the integration of Skilled, generated strong cash flow, paid down debt, and set the foundations for future growth.”


Overall results were affected by poor performance in the maintenance division, as a significant decline in the marine business — from lower energy prices and project completions — offset any gains from the non-marine business. Programmed has now agreed to sell its entire international marine activities business and 50% of the Australian and New Zealand marine business to Atlas Professionals, a global provider of staffing services to the oil and gas industry.


It also will form a 50:50 partnership with Atlas to help tide it over the downturn in the marine services business.


The company said demand for blue collar workers from its staffing division tightened during the second half of the year as customers, particularly in Western Australia, reduced labour requirements.


While revenue for the business was maintained during the period, margins were lower, it said.


Sutherland said in a statement, “Our recent trading suggests that many businesses in the sectors we serve are still seeking to reduce costs.”


In view of the current uncertainties, the company has cut 60 jobs since 1st April, reducing $10m in annual costs, in an effort to improve the return on capital for the 2018 financial year.


The company will pay a fully-franked final dividend of 3.5 cents a share, down from 5.0 cents a year ago.


Original story sourced from The Australian: http://www.theaustralian.com.au/business/companies/programmed-swings-to-fullyear-profit/news-story/565aa1e401672d876a5b6a5b6c8d0e03


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