Forge braces for loss of up to $25m

After three trading halts, numerous writedown adjustments, and project cost blowouts engineering firm Forge Group has this morning announced it is bracing for a loss of up to $25 million for the 2013/14 financial year.

Emerging out of Friday’s trading halt Forge today told investors it is expecting an earnings loss of between $20 million and $25 million for this financial year.

Previously the group said it was forecasting pro-forma EBITDA of between $45 million and $50 million.

Forge CEO David Simpson said FY14 has been a challenging period with increased competition and slowing domestic activity.

Late last year cost overruns at its Diamantina and West Angelas power station projects forced the company into its first trading halt – where it flagged a $127 million writedown.

Earlier this month Forge requested its second trading halt, emerging with an increased writedown on the projects of between $150m to $155 million.

“The management team is very focused on completing the Diamantina Power Station and the West Angelas Power station projects as quickly as possible so the company is better positioned for a stronger performance in FY2015,” Simpson said.

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