Oamaru-based Whitestone Contracting Ltd has announced a 6.5% drop in turnover, after facing a turbulent start to the financial year.
In its report for the first six months to the end of December 2012, the company, which is a wholly owned subsidiary of the Waitaki District Council, recorded an operating deficit (before subvention payments) of $228,944, compared with a $423,280 surplus in the corresponding period the previous year.
The company made $28,004 in subvention payments, which included $10,000 to the Oamaru Opera House, $16,500 to the North Otago Rugby Union and $1148 to the Oamaru Christmas parade.
The company also lost the services of long-time director Natalie Evans, who resigned in December after six years on the board.
Company chairman John Walker said inclement weather in July and August had meant the company was unable to make progress on ''a number of key jobs'', and had led to the loss of two ''significant'' contracts, adding up to a ''challenging start'' to the 2012-13 financial year.
The company lost the Waimate District Council's three-year roading contract in May, just two months after it lost the Waitaki District Council's five-year roading contract. The contracts had accounted for 25% of company turnover.
However, the company was ''working hard'' to produce a positive year-end result, Mr Walker said.
''The management team have worked hard to maintain sales and have managed to mitigate most of the loss of turnover, with only a 6.5% drop recorded.''
The company also had ''an excellent forward workload'', he said.
The company had begun work on the Oamaru Business Park project as head contractor, and had secured ''major contracts'' in Christchurch, he said.
Major projects in Tekapo, Christchurch and Oamaru were under way and the company would continue to tender for additional works, Mr Walker said. He noted the company's first-half profits were traditionally lower than its second-half profits.
