AusGroup sinks into the red in 1Q on lower sales, higher finance costs

SINGAPORE (Nov 25): AusGroup posted a loss of A$2.08 million ($2.21 million) for 1Q17 compared to a profit of $348,000 in the same quarter a year ago.

Revenue for the quarter stood at A$101.3 million, down 23.7% from A$132.75 million in 1Q16 as a result of reduced contributions from the group’s port and marine businesses, as well as due to the absence of contributions from maintenance service contracts which were completed in the prior year.

Gross profit declined 40.1% to A$9.1 million as compared to A$15.2 million in the previous year, with research and development credits and inventory adjustments accounting for A$3 million of the gross profit in 1Q16. However, the group adds that the normalised gross margins are still within management’s target range of 10%-12%.

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