Downer EDI, an ASX-listed facilities management provider, has announced that it expects to report a loss of 386 million Australian dollars (US$252.4 million) for the fiscal year ending in June. The company attributes this loss to impairments against its facilities and utilities operations.
In its audited results, scheduled to be released on Aug. 10, Downer EDI will include non-cash impairments totaling A$549.6 million. However, after taking into account one-off items, the company anticipates an underlying net profit after tax and amortization of approximately A$174 million.
Of the impairments, A$483.0 million is attributed to goodwill and A$66.6 million against assets. Specifically, Downer EDI will report a facilities goodwill impairment of A$350.0 million and a utilities goodwill impairment of A$133.0 million.
Chief Executive Peter Tompkins acknowledged that Downer is currently experiencing significant organizational change but emphasized that the company has delivered underlying earnings as previously communicated. Tompkins also noted that the group is on track to achieve annual cost savings of A$100 million by fiscal 2025.
Despite the expected loss, Downer EDI assures that its liquidity position remains strong and that it has significant headroom under all covenants.
