May 1, 2020 / 6:47 AM / a month ago

BRIEF-Monadelphous Group Says Margins In H2 Expected To Be Significantly Challenged

May 1 (Reuters) - Monadelphous Group Ltd:

* ENGINEERING CONSTRUCTION DIVISION EXPERIENCED SUPPLY CHAIN ISSUES CAUSING DELAYS ON LARGE RESOURCES CONSTRUCTION PROJECTS

* REMAINS UNABLE TO PROVIDE DEFINITIVE REVENUE GUIDANCE FOR FY ENDED 30 JUNE

* WILL MAKE PROVISION OF $14 MILLION BEFORE TAX FOR YEAR FOR PROJECT UNDERPERFORMANCE AND RESTRUCTURING COSTS.

* SHOULD ACTIVITY LEVELS CO IS CURRENTLY EXPERIENCING CONTINUE TO END OF FY, REVENUE WOULD BE SIMILAR TO THAT OF LAST YEAR

* EXPERIENCED MATERIAL REDUCTION IN ACTIVITY LEVELS, PARTICULARLY IN FLY IN FLY OUT OPERATIONS

* MARGINS IN SECOND HALF OF FINANCIAL YEAR EXPECTED TO BE SIGNIFICANTLY CHALLENGED DUE TO DISRUPTION IN OPERATIONS

* CHAIRMAN, MANAGING DIRECTOR & NON-EXECUTIVE DIRECTORS AGREED TO A 30% REDUCTION IN SALARY AND FEES FOR NEXT SIX MONTHS

* DECIDED TO DISCONTINUE WATER INFRASTRUCTURE BUSINESS OPERATIONS IN NEW ZEALAND

* EXECUTIVE, GENERAL MANAGEMENT TEAMS AGREED TO SALARY REDUCTIONS FOR SIX MONTHS OF BETWEEN 10%-20% Source text for Eikon: Further company coverage:

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