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- Saunders International (SND) has revised its revenue guidance for the 2020 financial year, which now sits between $66 million and $70 million
- Based in New South Wales, the company is a multi-disciplined engineering and construction provider
- This represents a more cautious outlook in comparison to the more concrete $70 million that was announced in February this year
- Given its current projects, the company is anticipating a more productive 2021 financial year, and has forecast a target budget of $100 million
- Separately, Saunders drew attention to several operational impacts brought on by the COVID-19 pandemic
- Saunders shares are steady at market open, trading for 46 cents per share
Saunders International (SND) has announced its revised revenue guidance for the 2020 financial year of between $66 million and $70 million.
Based in New South Wales, the company is a multi-disciplined engineering and construction provider. Saunders provides design, fabrication and maintenance services to a range of industries across Australia and the wider Pacific region.
The revised revenue guidance represents a marginal drop in comparison to the more concrete figure of $70 million that was announced in late February this year.
Today’s announcement noted that, at the time, Saunders was not aware of the potential impacts COVID-19 might have on its projects and supply chain. It now appears that some delays in productivity are reducing the company’s operating margins, pushing a portion of project revenue through to the 2021 financial year.
The revised guidance of $66 million to $70 million is partly based on forecast EBIT margins of between 1.8 and 2.3 per cent.
On a more positive note, Saunders has a reported $107 million on its current order book which, along with the delayed revenue, has resulted in a target budget of $100 million for the 2021 financial year. This includes forecast EBIT margins of between 3.75 and 4.75 per cent.
Separately, the company has implemented a number of safety measures related to COVID-19, and is continuing to monitor the effects of the pandemic on its operations.
To date, the impacts have included reduced productivity at some of its sites, including Saunders’ pre-cast facility, due to mandatory social distancing requirements, as well as delays in the receipt of materials due to impacts on freight channels.
Interstate travel restrictions have also taken their toll, preventing specialist personnel from attending certain project sites.
While there have been no confirmed cases of the virus within the company, Saunders reaffirmed its commitment to both preserving cash and further monitoring the COVID-19 situation.
Saunders shares are steady at market open, trading for 46 cents per share at 10:49 am AEST.
