- Engineering company Engenco (EGN) expects to release a strong full-year financial report, despite the impact of the COVID-19 pandemic
- The company has reaffirmed that its profit before tax in the second half of FY20 is on track to surpass the previous half of the year
- As a result, the company is forecasting its full-year profit before tax will reach between $9 million and $10 million
- Engenco attributes the improving financials to better-than-expected trading performance and the early start of a number of profitable projects
- Following the news, Engenco shares have spiked 4.17 per cent, trading for an even 50 cents each
Engineering company Engenco (EGN) expects to release a strong full-year financial report, despite the impact of the COVID-19 pandemic.
Earlier last month, Engenco noted its profit before tax in the second half of FY20 was on track to surpass its first half of the year. With the 2020 financial year now complete, Engenco has further validated this claim, citing better-than-expected trading performance and the early start of a number of profitable projects.
As a result, the company is forecasting its full-year profit before tax will reach between $9 million and $10 million. If the company manages to reach the upper limit of the estimate, it will also surpass 2019’s full-year profit before tax, an impressive feat considering the recent market volatility.
However, it remains to be seen whether the company can reach this upper target. Investors will have to wait until the release of Engenco’s full-year annual report, which is expected in August.
Engenco’s Managing Director and CEO, Kevin Pallas, said the company had worked diligently to ensure business continuity in the very changeable climate.
“While some parts of the business have been affected more than others, the total volume of work remained reasonably stable in the last quarter of the financial year, and there appears to be satisfactory business momentum going into the new financial year,” he added.
In related news, the company is also in the final stages of extending the dollar limits and tenure on its undrawn credit facilities.
By extending the facility, Engenco hopes to ensure funding security in an uncertain economic environment and position the company for future growth.
Following the news, Engenco shares have spiked 4.17 per cent, trading for an even 50 cents each at 10:37 am AEST.