In continuing difficult trading conditions, major contracting firm Hastie Group was amongst a handful of firms to announce a half yearly loss for the first half of the 2011-12 financial year.
With a $149.1 million after-tax loss, shares in the engineering services firm fell nearly four per cent as a result.
In a year when the stock fell from more than 80¢ to less than 10¢, Hastie chairman Trevor Bourne revealed details of how the group intends to remain in business.
It was only in 2010 that the company was still purchasing businesses to broaden its areas of influence but now, to cut costs, the company will reduce its number of operating entities from almost 60 to below 40, to reduce costs and centralise much of Hastie’s administration.
Hastie bought 20 operations during its expansive years, retaining each as separate corporate entities rather than integrating them into the Hastie brand. Names include Austral Refrigeration, Frigrite Air Conditioning, Gordon Brothers and Optimus Air Conditioning.
According to the Sydney Morning Herald, the divestment should cut costs by two
to three per cent, or $30 million to $40 million in a group that turns over about $1.5 billion a year.