Rich-listers Wagners take hit as concrete company shares slump

THE construction dynasty behind the Wellcamp Airport saw its holdings in a major cement business slump by about $27 million yesterday as major new projects failed to materialise.

SHARES in the cement and construction company operated by the rich-lister Wagner family spiralled as a dispute with a major customer and delays in new projects hit its bottom line. Toowoomba-based Wagners Holding Company reported a loss of $1.2 million in the six months to the end of December as revenue dipped 1.2 per cent to $122.3 million.

Wagners chairman Denis Wagner said the company’s results had been impacted by the lack of major project work, reduced cement volumes due to its pricing dispute with Boral and increased pricing pressure in the concrete and cement markets in south-east Queensland.

Wagners has been hit by a dispute with a major customer

Wagners shares slumped 17.4 per cent to $1.47 on Tuesday, slashing the market value of the company by $58 million. Mr Wagner along with brothers John, Neill and Joe directly own a combined 48 per cent of the company that was established in 1989 and floated on the ASX in 2017. The family also built the private Wellcamp Airport west of Toowoomba.

Mr Wagner said the company had recommenced supplying cement to Boral with the dispute awaiting judgement in the Queensland Supreme Court.

He said looking ahead there would be continued pressure on the south-east Queensland construction materials market although cement volumes would improve with the recommencement of supply to Boral.

The company’s business in composite fibre technology (CFT), a lightweight material used to build pedestrian bridges, boardwalks and jetties, would soon start production in the United States. “CFT has increased with international expansion and large projects won in our local market,” said Mr Wagner. “More work has been secured in Abu Dhabi as well as a large stadium project in Townsville.”

The company also has won contracts with Adani and Cross River Rail as well as tendering for two large international LNG projects.

Wagners will operate the South Back Creek Quarry near Clermont supplying building material for the Carmichael mine and rail project. The mine will be connected to the Abbot Point port by a 200 km narrow gauge rail line “No contracts have been awarded on the LNG projects but we remain engaged on both,” said Mr Wagner.

Neill, John, Denis and Joe Wagner . Pic Annette Dew