Advertisement

Programmed upbeat on Skilled deal

Programmed managing director Chris Sutherland. Picture: Mogens Johansen/The West Australian.

UPDATE 2.40pm: Programmed managing director Chris Sutherland says a "more flexible" merger offer with Skilled Group would create a stronger business able to take advantage of long-term opportunities in staffing and maintenance.

The two companies this week announced they would hold further talks about a tie-up, four months after Skilled rebuffed Programmed's proposal. Skilled said its suitor had indicated it could enhance the terms of the offer.

Programmed in January made a $1.38-a-share cash and scrip proposal.

"We've indicated that we've got some flexibility around the terms and how we best combine the businesses for both sets of shareholders," Mr Sutherland said this morning.

"They've taken that on board and agreed to have discussions about that."

Mr Sutherland said the two companies combined would be more diversified and better positioned.

"The long term opportunities across all sectors, including resources, for a strong staffing, maintenance, facilities management service provider are very good.

"That's part of the proposition about bringing out two businesses together where a strengthened outfit, stronger balance sheet is more able to take on larger opportunities in that space."

Mr Sutherland warned there was no certainty that a transaction could be concluded.

Programmed suffered a 16 per cent fall in net profit to $25.7 million for the year to March 31.

But excluding restructuring costs and other one-off items, profit was down 4.7 per cent to $30.4 million, which was $600,000 ahead of analysts' expectations.

It also lifted its final dividend half a cent to 11.5 cents.

Earnings from the company's property and infrastructure division rose 16 per cent, but that was offset by weaker performances from its workforce and resources divisions, with earnings down 29 per cent and 18 per cent respectively.

Programmed's shares were up nine cents, or 3.53 per cent, to $2.64 at the close, while Skilled was up one cent to $1.385.