A "tough" year for Waitaki District Council-owned Whitestone Contracting Ltd has resulted in a big drop in profit.
This financial year, the company recorded an operating surplus of $75,415 (before subvention payments, donations and tax), compared with $366,059 the previous financial year.
When the subvention payments, donations and tax are added into the balance sheet, Whitestone had a net loss of $278,334 for 2010-11, compared with a loss of $76,761 the previous financial year.
The council will consider the annual result at its meeting today, along with a verbal report from company chairman John Walker.
In his annual report, Mr Walker described the company's year as "challenging" and "tough".
Revenue had grown from $19.97 million to $20.7 million, but margins had been hit hard.
A reduction in projects available for tender, cost escalation in road user tax and fuel by $357,000 and one-off employment costs of $100,000 had reduced the bottom line.
"Those [tenders] we did win were at very low margins," he said, and there were poor performances on some significant contracts.
However, Mr Walker was positive about the future, with the financial performance improving in the last quarter of the financial year.
Solid progress was being made in some areas and restraint would continue to be exercised in capital expenditure this year.
Over the next 12 months, the company planned to improve contract performance and cost control, expand where advantageous, maintain a diversified portfolio of work and clients and focus on contract performance.
