Big debt haunts McAleese results

McAleese says one of its heavy haulage customers is struggling to pay a significant debt

Big debt haunts McAleese results
McAleese's formal 2015 result has not been announced yet


McAleese says its full year result for the 2015 financial year will fall within expectations and guidance, despite a major customer falling into arrears.

The unnamed customer has not disputed the money owed, but is struggling to transfer the funds because of slow payments by one of its own customers. McAleese says the debt, reported to be worth $10 million, will likely have an impact on its full year earnings report, but won’t push it out of previous guidance to the market.

"The company continues to monitor receipts from debtors in light of industry conditions in the major project market, and in particular a significant debtor to the heavy haulage and lifting division," McAleese informed the Australian Stock Exchange yesterday.

"The company continues to seek information to determine what, if any, provisions against the debt should be reflected in the 2015 results."

This may result in changes to McAleese’s financing arrangements, in place only since the end of June.

"McAleese has commenced discussions with its financiers regarding its debt facilities with the aim of providing a stable base to improve the company’s balance sheet, operations, and long term growth prospects."

McAleese has not yet scheduled its full-year results announcements.

You can also follow our updates by joining our LinkedIn group or liking us on Facebook