Whitestone profit

Whitestone Contracting Ltd has had a strong start to this financial year, the Waitaki District Council-owned company announcing a operating surplus of $359,697 in the first six months.

Turnover has risen by $496,375 to $10.616 million compared to the first six months in the 2013-14 financial year and operating expenses have risen $227,660 to $10.247 million.

After allowing for sponsorships, donations, subvention payments and tax, the company recorded a net profit of $281,235.

Company chairman John Walker said Whitestone had made a solid start to the year with its increased earnings and would be focusing on improving job efficiencies to ratchet up margins in a highly competitive environment.

Until 2012, the company had held roading maintenance contracts worth millions of dollars with the Waitaki and Waimate District Councils, but lost those when they expired.

That placed financial pressure on the company, resulting in substantially reduced profits and returns on the council's investment.

This year's revenue is the highest for six months since December 2010 and the interim profit is considerably better than the last two years.

That has been a result of the company landing some major road and bridge contracts, along with supplying asphalt from its new plant.

''The company has a reasonable forward workload. However, [we] will need to secure more major projects for the last quarter of this financial year,'' Mr Walker said.

david.bruce@odt.co.nz

 

 


Whitestone Contracting

 

Half-year result to December 31:

• Income $10.616 million.

• Expenses $10.565 million.

• Operating surplus $359,697.

• Net profit $281,235.

• Net assets $11.682 million.



 

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