Ausenco writes down $6.8m
Ausenco Limited (AAX), whose share price continues to hover around all-time lows, this morning confirmed it would take a $6.8 million impairment charge on the goodwill of the company’s Energy business. However, Ausenco said the impairment would affect neither cash flow, or its compliance with debt covenants.
Despite the writedown, representing around 5% of the value of the goodwill assets associated with businesses that were acquired in 2008, CEO, Zimi Meka, stood by the company’s diversification into the energy business.
This is despite delays in emission trading in both Australia and the United States.
“Despite these delays, we have confidence in our business model and the medium term growth plans for this area of our business. Our strategic and operational goals remain unchanged,” Mr Meka said.
“We are confident the Group’s energy experience and strong track record for innovative engineering solutions provide a solid base for leverage and market growth in the power, alternative energy and renewable energy markets.”
At 1038 AEST, Ausenco shares were trading down 9.5c at $1.855.
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