Building services company Hastie Group Ltd
(ASX:HST) has issued an earnings downgrade as a result of project delays, slowdown in retail capital expenditure and some impact from the continuing stronger Australian dollar.
The company says it now expects operating earnings before interest and tax to be around $75 million for the financial year to June 30, 2010.
CEO David Harris says the company expects the deferral of capital expenditure to be temporary, with expenditure expected to flow through to earnings in fiscal 2011 and beyond.
Mr Harris says, as explained in February, Hastie continues to see short term softness in a number of areas, with the large supermarket chains delaying the start of work for some major projects across Australia, while other scheduled project programs have also been delayed, particularly in the Middle East.
The company also announced the acquisition of the assets of Spectrum Fire & Security, one of Australia’s largest fire services businesses, with revenues in excess of $100 million a year.
The assets have been purchased for $7 million after the company had been placed into voluntary administration.
Hastie Group’s net profit after tax came to $58.34 million for fiscal 09.
