Adelaide Brighton announces results for 2017

Adelaide Brighton announces results for 2017
05 March 2018

Adelaide Brighton has announced its results for the full-year period, ended 31 December 2017. The company saw a 2.3 per cent YoY fall in net profit to AUD182m (US$141m), but revenue increased 11.7 per cent to finish at AUD1.56bn.

The company received AUD17.7m of impairments, significantly higher than the anticipated AUD14m. As a result, the manufacturer has hired forensic accountants to examine whether an employee may have deliberately hidden customer underpayments for supplies over a sustained period, according to InDaily.

"While the financial impact of the discrepancies has been quantified, investigations are continuing," said Adelaide Brighton in a statement.

Elsewhere, the company’s investors are believed to be eager to buy the cement business owned by its major shareholder, Barro Group, which is worth approximately AUD500m. While the focus has previously been on whether Barro would stage a takeover of Adelaide Brighton, it is now more likely that Adelaide Brighton will acquire Barro’s interests, according to The Australian.

Following the poorly-received financial results, shares in the business dropped six per cent. Using this opportunity, Barro Group increased its stake in the company to 40 per cent on Wednesday.

Published under Cement News