16 April 2008

At today’s inaugural Annual Meeting since listing on the New Zealand Stock Exchange in October last year, global infrastructure services provider, Opus International Consultants’ Chairman, Basil Logan, said the Board was pleased with the year end results for 2007 and that he is confident that the company is on track to achieve its forecasted results for 2008.

In making the announcement Mr Logan said that the company had delivered on its prospectus promise for 2007 and that Opus had in fact exceeded forecasts in both revenue and profit.

“Revenue grew 17.4 percent to NZ$296.3 million, exceeding our forecast by NZ$15.4 million or 5.5 percent,” said Mr Logan. “This continues our growth pattern in revenue, which over the past five years has almost doubled from NZ$149.7 million in 2003 to NZ$296.3 million in 2007.”

Mr Logan also reported that the net surplus after tax grew by 6.5 percent to NZ$14.2 million, exceeding forecast by 4.7 percent.

“After adjusting the 2006 and 2007 results for the after-tax effect of non-trading gains, NZ$1.352 million and NZ$0.128 million respectively, the net surplus after tax grew by 17 percent,” he said. “Similarly, the adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), grew by 15.37 percent to NZ$23.8 million, exceeding forecast by 3 percent.”

Return on equity was reported as 25.6 percent compared with the forecast of 24.7 percent. Reflecting on the investment market volatility, Mr Logan said the board was pleased with the strong investor support to our public listing in October and since which was recognition of the company’s sound track record, world class capability and its promising prospects.

“Global market uncertainty has had a significant effect on the New Zealand market. However, despite this market volatility Opus has performed well. Both the New Zealand 
Investment benchmark, the NZX-50 and the NZX All indices decreased by 18% since October 29 last year when Opus listed on the NZX. However, I am pleased to note that our closing price of $1.75 yesterday is 6% above the offer price.”

The future outlook for the company remains positive with Mr Logan saying the company remains committed to achieving its forecast for revenue and surplus after tax in 2008. “This will be aided by a modest uplift in surplus after tax from our recent acquisition in the UK of the Joynes Pike Group,” said Mr Logan.

“Results of our trading for the first quarter 2008 were on track” he said.

“We cannot ignore the possibility that growing predictions of recession will become reality. Although no business would be immune in such circumstances Opus has some built in resilience due to the duration of it’s projects and contracts, the nature and long planning horizons of our major clients and the infrastructure deficit which our services are addressing in each of our markets”

“We will however remain prudent in management of our resources, the maintenance of our strong balance sheet and the disciplines applied in our acquisition strategy.”