Opus reports successful year despite challenges

Opus International Consultants recorded an 11 per cent profit increase. Photo / APN

One of New Zealand's most highly regarded engineering companies Opus International Consultants reported a solid result in what was described as a challenging year.

The listed company reported earnings before interest and tax (ebit) of $31 million for the year ended December, in line with the 2010 result. Reported profit increased by $2.5 million, or 11 per cent, to $24.5 million.

Operating revenue was up 7 per cent to $393 million.

Managing director David Prentice said 2011 was a successful year for Opus in spite of difficult conditions in some economies.

The company's acquisition programme was put on hold in 2008 and 2009 but had been reignited.

"We upped the ante in 2010 and are targeting growth in Australia and Canada."

Asked about the company's contribution to the recovery in Christchurch, Prentice said Opus was one of the largest consultancy firms in the city and had increased its staff by about 70 to 230. Some engineers had been brought over from Britain.

Opus had readjusted its business to provide the resources needed for such a large project, he said.

The global recession, particularly as it affected the UK operations of Opus, continued to hamper the company's operations but Prentice had used the opportunity to either bring engineers over to work in Christchurch or Dunedin or to send work to the UK-based engineers.

During the year, the company continued to strengthen its position in New Zealand and Australia. Revenue in those markets grew 6 per cent and 8 per cent respectively.

In Britain, effects of the global recession and Government austerity measures continued to make trading conditions difficult, resulting in a loss of $1.2 million in that market, Prentice said.

In Canada, following the successful integration of Opus DaytonKnight, profitability had improved.

Opus was looking for growth in its four developed markets but was now also looking for business opportunities in Asia and the Middle East.

A joint venture was being investigated in the Middle East but it was still early stages, Prentice said.

"These things take time. You can't go to a new market and expect growth without establishing a platform and a customer base. But in the next 12 months or so, I expect we will be doing that."