SUPPLIED
Inframax’s underlying capability is highlighted by its regaining the Ruapehu maintenance contract and a growing construction order book, board chair Earl Rattray said in his report to the Waitomo District Council.
The report was made public at the council’s last meeting in November. Inframax is owned by the Waitomo District Council.
An after-tax loss of $800,000 for the year to June 2022 reflected a challenging year and was disappointing after recording an unbroken run of profitability over the past nine years, Earl said. He has been board chair since April 2022.
“Inframax is regaining momentum after putting a difficult period behind us and has a line of sight to return to profit,” Earl said.
“Businesses everywhere are feeling the impact of inflation. We have had to manage the delicate balance between absorbing these costs while honouring historical contractual obligations.
“At the same time, non-recurring expenses incurred after the flooding event at one of the quarries when unprecedented rainfall from Cyclone Dovi hit Waitomo, together with the loss of production, has been a major contributor to the negative business result this year.
“While we learn from the past, our focus is on the future. “It is moving forward out of a difficult period in the construction sector, and for any sector, actually.
“Inframax is in a very, very good place or state of mind at the moment, and its culture is very strong. It’s great to have that large pool of solid King Country people that are committed to the company.”
The Waitomo District Council refreshed the Inframax board of directors in the last quarter of the June 2022 financial year.
Janie Elrick, Hugh Goddard, and Chris Ryan were appointed as new directors. New chief executive Vesta Gribben was hired in March 2022 to lead the company’s executive and management functions.
“Whilst the financial result of the past year does not reflect it, there are a number of positives to take out of the 12 months to 30 June, 2022, which places the company on a sound future footing and can provide our people, customers and shareholder with confidence in the outlook of the business,” Vesta said.
“Our annuity revenue order book, secured by long-term maintenance contracts, was strengthened in the year through the commencement of our partnership agreement with Fulton Hogan on the Waka Kotahi West Waikato Network Outcomes Contract, the extension of our road maintenance contract with Waitomo District Council and the award of a road maintenance contract with Ruapehu District Council.
“The confidence of these customers in Inframax bears a direct correlation to the talent, skill and knowledge of our people and the underlying strengths of the business.
“Looking ahead, management’s focus is to quickly pivot from this challenging year and to build on the strengths of the company to bounce back in the next financial year,” she said.
Financial summary – 12 months ending June 2022 – Operating revenue of $34.495m, up 6.9% on prior year – Net assets of $11,575m.
