UGL Limited (ASX:UGL)
says that it is on track to deliver on FY16 guidance of $2.3 billion revenue with EBIT margin guidance of 3 per cent.
First half net profit came in at $18.5 million from operating revenue of $1.2 billion, that equals the previous first half revenue.
A NorthConnex contract will help offset lower revenue in engineering and construction with lower revenue in rail and defence.
The company will not declare a dividend for the 2016 financial year with margins hopefully returning to 4% in the 2017 financial year as the business turnaround is achieved.