Wagners forecasts positive outlook despite $1.2m loss

TOOWOOMBA company Wagners has forecasted a more positive profit result for shareholders in the coming 12 months, after reporting a $1.2 million loss.

Wagners truck in front of pile of grey material

TOOWOOMBA company Wagners Holding Company has forecasted a more positive profit result for shareholders in the coming 12 months, after reporting a $1.2 million loss in its half-yearly report.

The publicly-listed construction materials business announced the drop today, which was well down from the $6.9 million profit after tax it reported in the first half of the 2019 financial year.

Chairman Denis Wagner's report said a recent cement supply dispute with Boral and a lack of major project work weighed heavily on profits between July and December 2019.

An accounting change that affected all companies also impacted on the reporting of the results, according to the document.

"The results for the half year ended December 31 2019 were low compared to the prior corresponding period due to no major project work undertaken in this half, reduced cement volumes due to (a) dispute with a major customer, increased pricing pressure in the concrete, aggregate and cement markets in southeast Queensland, (and) the winding down of our precast business, pending the commencement of a large project," the report said.

"The operating expenses, depreciation and finance income in December 2019 in this report are presented under the new accounting standard and are not comparable to June 2019 or December 2018."

Wagners started supplying cement to Boral again in October, with a Supreme Court judgment over a pricing dispute expected this year.

In its outlook, the company expected to see continued pressure in the southeast Queensland construction materials market, but hoped to see cement volumes improve and new projects start work.

Wagners also pointed to the upcoming expansion of its composite fibre technologies business into the United States, with the company to announce the location of its American plant soon.

The result has already had an impact on the company's share price on the ASX, which dropped by 17 per cent to $1.47 just after 1pm.

You can follow the live share price here.

CEO Cameron Coleman was contacted for comment on the half-yearly report.

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