Swick posts loss, sees better second half
Swick posts loss, sees better second half

UPDATE 1.20pm: Swick Mining Services has posted a first-half loss of $423,000 on cost cutting by clients and tougher competition.

The loss came on a 25 per cent slump in revenue to $57 million.

The company will pay a fully franked interim dividend of 0.2 cents a share.

Swick said revenue was affected by lower demand from its client base as a result of reduced budgets and cost saving measures.

"In addition, the competitive market required Swick to renew and negotiate contracts at reduced pricing levels," the company said in a statement.

However Swick predicted improved performance in the second half.

"Despite the lower revenue, Swick has a very strong order book and a record number of contracts and operating sites," the company said.

"This provides a solid foundation for a strong rebound in revenue when client budgets return to normal levels."

Shares in Swick closed off one cent, or 3.57 per cent, at 27 cents.

The West Australian

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