RCR Tomlinson Limited (ASX: RCR) went into a trading halt, pending the release of market announcement.
Early this morning, 12 November 2018, the company has requested Australian Securities Exchange to place RCR’s shares in trading halt as the company intends to make a market announcement in respect of Fiscal 2019’s earnings. The associated consequences for its funding are also expected to be announced in the market release. The trading halt will remain in place until the earlier of 14 November 2018 or the release of pending market announcement by the company as stated above.
Recently, the engineering and infrastructure giant has announced the resignation of its Chief Financial Officer Mr. Andrew Phipps.
Appointed to the role of CFO in October 2013, Mr. Andrew Phipps has resigned from his position with effect from 7 November 2018 reportedly due to personal circumstances. Further, it has been informed that Group Financial Controller, Mr. Andrew Batch has taken over the CFO responsibilities on a full-time basis until the company appoints a replacement to the role.
Tracking down the company’s recent contract, ECI agreement for the Mount Piper Energy Recovery Project has been the highlight.
In an announcement dated 18 October 2018, the company informed that it has signed an Early Contractor Involvement(ECI) services agreement with private electricity provider EnergyAustralia Development Pty Ltd and waste manager Re.Group Pty Ltd. The contract is aimed to develop the scope, schedule, design and costings of the Piper Energy Recovery project located in New South Wales. Further, the ECI agreement is intended to assist the joint developer of the project Re.Group Pty Ltd and EnergyAustralia Development Pty Ltd in taking Final Investment decision.
RCR’s Interim CEO and Executive Director Mr. Bruce James then stated that RCR has extensive experience in waste-to-energy solutions and Early Contractor Involvement, assisting many customers to achieve FID for their projects across multiple sectors including energy and transport; as well as the capability and resources to deliver a full EPC solution.
In Fiscal 2019 update, the company reported more than 96% of completion of its solar projects, however the company has faced considerable delays and labor productivity issues while completing some of its solar projects.
The company has also experienced reduction in order book ahead of delays in project approval or finalization on client’s end, effect of RCR’s voluntary suspension on the ASX, and increased focus by RCR on a more acceptable risk profile. In Financial year 2019 the company has increased its focus on medium size contracts and related activities.
Currently placed in trading halt, the securities of RCR Tomlinson last traded at $0.870 with market capitalization of $231.11 million. In the past one year the stock has seen a performance change of negative 73.65%.
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