Whitestone Roading Ltd yesterday reported an increase in profits for the financial year, and is set to increase turnover next year, despite the loss of two major contracts.
Figures released in the company's annual report for the financial year ended June 30, 2012, indicated that operating profit before subvention payments, donations and tax rose tenfold from $75,415 in the previous financial year to $770,325 this year.
Company chairman John Walker said even including the one-off redundancy costs brought on by the loss of the Waimate and Waitaki roading contracts in June, 2012 had been "a pretty positive year".
"We had a significant improvement in gross profit, which basically meant our efficiency has improved.
Therefore, that contributed to a significantly better profit all round."
As a consequence of the company's success, Whitestone Roading would return $300,000 to its shareholder, the Waitaki District Council, and $96,000 in contract savings and community sponsorships, both of which were similar to last year, he said.
The Waimate and Waitaki roading contracts made up 25% of company turnover, but even though those contracts had been worth $5 million a year and contributed to a turnover of $19.4 million in 2012, Mr Walker said the company expected to increase turnover to more than $20 million next year, despite having lost contracts with the Waitaki District Council.
The company, which is a wholly owned subsidiary of the Waitaki District Council, had "more than replaced" the lost contracts, Mr Walker said.
"The forward viability of the business is very secure.
"We have a significant forward workload, which includes the Oamaru north-end business park, and that work we understand will commence in October.
"We also have a major water main job in Temuka and we also have a significant amount of flood damage [repair] to do in the Mackenzie district."
He said the company had further work lined up with Oceana Gold and Chorus, as well as an "ever-increasing" workload in Christchurch.
