Lycopodium Limited provided earnings guidance for the financial year 2015. For the year, the forecasting an operating loss for the financial year of the order of $1 million to $2 million.
The operating result is attributable to the prevailing market factors and operating conditions: Deferral, delays and further scaling back of projects by clients. Ongoing delays in governmental approvals for new projects. Ongoing difficulties to secure funding for new projects. Continued austerity measures by the major mining companies. Difficulties in closing out projects with clients. A diminished number of opportunities in the minerals sector, both domestically and internationally. This has translated into a highly competitive tendering environment, a reduction in
conversion of tenders to new work, as well as a reduction in margins as new work is secured. Additional redundancy costs of $2.4 million in the second half associated with the further downsizing of the business to align with the available workload.