Monday, February 15, 2016

AusGroup sinks to A$69 mil 2Q loss, MD resigns

AusGroup posted an A$69.43 million ($68.9 million) 2Q net loss, compared with earnings of A$920,000 a year earlier. It also announced the resignation of its managing director, Gerard Hutchinson.

Revenue, however, rose 5.6% to A$126.15 million.

Cost of sales rose 24.7% to A$132.57 million, while impairment of receivables was A$44.62 million versus zero in the year-ago period.

The oil and gas and mining engineering company says the difficulties faced by its fabrication and manufacturing business unit, as well as the port & marine business, have put more pressure on the group's cash reserves.

The stock closed 1% higher at 10.5 cents.

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