Southern Cross expects $2M dip in Dec half year profit

Company News

by David Chau

Southern Cross Electrical Engineering Ltd (ASX:SXE) says that it could face a net loss (after tax) of $2 million in the half year ended 31 December 2016.

Southern Cross says this was due to a slower than expected ramp-up of work in the first half of the year. For example, the company says tendering activity remains strong in the mining and utilities sectors – but certain clients have been slower than anticipated to release contract packages.

The company also says Datatel, the company’s newly acquired telcos subsidiary, has experienced a temporary slow-down of work in the roll-out of the National Broadband Network in Western Australia.

Regardless, the company says it is confident about its workflow, and forecasts a profitable second half and full year underlying NPAT between $4 million and $5 million in FY17.

Southern Cross posted a net profit of $5.1 million at 30 June 2016.

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