![]() Downer has also been embroiled in a NSW corruption inquiry.īut Mr Tompkins said on Thursday he was feeling more confident about the company’s outlook after strengthening its balance sheet and setting clear targets for the next 12 months. The profit warnings and subsequent share price tumbles forced the exit of two directors, including chairman Mark Chellew, and the early departure of Downer’s chief financial officer, Michael Ferguson. It revealed “accounting irregularities” in December and slashed its earnings guidance, and then cut full-year guidance again at its first-half results in February. ![]() ![]() “Mostly, they need to avoid making big mistakes, like chasing the wrong contracts, or making bad acquisitions or disposals.”Īllan Gray, which holds about 9 per cent of Downer’s stock, is the company’s second-biggest investor after L1 Capital, which owns 13 per cent.ĭowner, which did not give specific profits guidance for the current financial year, has had a torrid seven months. “But the proof is in the numbers – what investors really want to see is a sustained period of good earnings and cash flows,” Mr Hillier said. Shareholders were prepared for bad news after the company told investors last week that it would finish 2022-23 in the red and that it is facing a more competitive market for defence projects.Īllan Gray analyst Tim Hillier said Downer’s new management team appears to be focused “on many of the right things”. “We want to make sure that we’ve got first-grade governance across our entire portfolio of projects,” Mr Tompkins told The Australian Financial Review.ĭowner’s shares slid 6 per cent to trade at $4.10 per share on Thursday afternoon after the company delivered a $10 million loss in its utilities division, compared with a $60 million profit a year earlier, and warned it would take time to turn around the troubled business.ĭowner EDI boss Peter Tompkins needs to deliver sustained earnings and good cash flow, investors say. ![]() Downer EDI chief executive Peter Tompkins has pledged to deliver consistent earnings and monitor project performance more carefully after the contractor hired a new chief risk officer and sealed an annual net loss of $386 million. ![]()
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