Structural Systems Market Update (ASX:STS)05 July 2011
A solid profit guidance from Structural Systems this morning.
The current FY11 NPAT guidance is between $4m and $4.5m. This means that the second half result was slightly better than the first half despite adverse weather conditions on the east coast. Their guidance is around 800K off my own forecast calculations and this may be attributed to the weather in Queensland where most, if not all, their mining services work is situated.
The guidance also includes an after tax loss of $5 million from discontinued operations. Work on the Eastern Treatment Plant remains the only project left from discontinued operations, so there may be still come discontinued operations losses to come. Melbourne Water's website notes that the work should be done by the end of 2012. I'm guessing the concreting will be done a bit earlier than that.
Looking forward to seeing the final report. Still appears to be plenty of margin of safety in this one.
FY11 Guidance NPAT (EPS): $4m - $4.5m (6.25 - 7 cps)
Excluding discontinued operations: $9m - $9.5m (14.1 - 14.9 cps)
Shares Outstanding: 63,884,474
Current Price: ~$0.73