Whitestone's base, near Oamaru.
The Waitaki District Council-owned company Whitestone
Contracting Ltd has had a "significant improvement" in the
first six months of this financial year, company chairman John
Walker said this week.
In its report for the first six months to the end of
December, the company showed an interim profit of $423,280
before tax, subvention payments and donations, compared with
a $50,978 loss in the same six months of the previous
financial year and a profit of $75,415 for the 12 months of
2010-11.
The half-year result was achieved on a lower income of $9.6
million compared to $10.4 million in the first six months of
the 2010-11 financial year.
At the same time, the company reduced operating expenses to
$9.1 million compared with $10.5 million in the first half of
the previous financial year.
The result is good news for Waitaki's ratepayers, who benefit
from profits paid by the company to its sole shareholder, the
council.
Mr Walker told the council meeting on Tuesday Whitestone had
achieved a significant improvement in its operating surplus
for the first six months of this year, despite fierce
competition in the contracting industry and a reduced
turnover.
The company continued to focus on efficiencies, reducing
costs and applying strict contract management principles to
ensure maximum value for the shareholder.
"Without a doubt, the company is adjusting to a reduced
workload in traditional areas and is very actively
positioning itself for new opportunities," he said.
Mr Walker was "cautiously optimistic" the company would
continue to win its share of the market over the final six
months of the financial year and, with a continued focus on
efficiencies, maintain an acceptable level of return to the
council.
Company chief executive officer Glenn Campbell said trading
conditions were tough and likely to remain so. The industry
was very competitive and some contractors were bidding for
tenders on a break-even approach.
Whitestone had about $3 million in construction projects
ahead of it, Mr Campbell said.
david.bruce@odt.co.nz
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