Wagner brothers shares slump $28m as concrete business hits tough times

The Wagner brothers’ holdings in their eponymous Toowoomba-based concrete and materials company has lost a staggering $28m in two days amid a profit slump.

The construction business is becoming tougher.

Just ask the Wagner brothers whose holdings in their eponymous Toowoomba-based concrete and materials company has lost a staggering $28m in the last couple of days.

Wagners reported a big slump in profit on Wednesday (down 24 per cent to $7.6m) as major projects such as Cross River Rail came to an end just as the business was hit by rising fuel costs and labour shortages. The negative news sent investors heading for the exits with the stock slumping almost 20 per cent on Wednesday and a further 7.6 per cent on Thursday to 80c.

That cut the value of the 103m shares held by the Wagners - including brothers John, Denis, Neill, and Joe - to $83m, down from almost $148m at the end of last week. The family own more than half of the company that listed on the ASX in 2017.

This week’s bloodbath prompted Macquarie to headline their report on the company’s profit decline “Fruit Ninja,” a reference to the video game that involves slicing fruit in half while avoiding strategically-based bombs.

Macquarie says the company’s margins are weaker than expected and downgraded the stock to ‘neutral.’ “The margin miss was from a decline in high margin contracts, such as the completion of the Cross River Rail contract, and the inability of the company to pass on shipping, raw material and labour costs to customers on fixed contracts,” Macquarie says.

John Wagner

ON THE RANK

They are busy beavers down at Black & White Cabs headquarters at the moment with the launch of a new platform to help people with disabilities travel independently.

Black & White Cabs boss Greg Webb tells your diarist the new service called DASH, which stands for Disability, Accessibility Support Hub, cements the company’s position as one of the leading transport providers for the National Disability Insurance Scheme (NDIS).

Webb says the service includes a dedicated support manager, credit accounts, trip monitoring and preferred drivers. “Access to transport is vital for social participation for people with a disability,” says Webb. “We can track spending for NDIS participants and send an alert once they reach a low balance. We also provide an average trip spending amount.”

Webbs says that after a couple of tough years, his business is growing, fuelled by new booking technology and NDIS contracts. The 102-year-old firm has survived wars, depression and more recently the onslaught of Uber, but its biggest challenges these days is a lack of drivers and cars. Webb admits it has not been easy for the traditional cab industry with rideshare apps such as Uber taking 30 per cent of the taxi business over the last five years followed by the Covid-19 shutdowns.

Webb says Uber took a big chunk out of what he calls the “punter trade” – people going to dinner, the pub or the club. But the company is fighting back with improved booking technology including apps, payment systems and customer driven data.

Black & White Cabs launching new service for the NDIS.

SUITS HIM

Brisbane spin doctor Anthony Fensom is a fastidious man when it comes to dress - he is rarely seen without his tailored grey suit and tie with some, perhaps nastily, suggesting he makes love in it.

Imagine the surprise among his colleagues at Republic PR when Fensom announced he will be taking part in The Sunday Mail Transurban Bridge to Brisbane fun run this Sunday, an activity that will no doubt involve donning running shorts and sports shirt. “We are not entirely sure he won’t turn up for the run in his suit,” one wag tells your diarist. We hear Fensom has been busily gaining sponsors for the run including more than a $1000 from his old mate Stu Crow from Lake Resources.