From Colin Kruger’s daily CBD column for BusinessDay, Feb 28 2014:
The transcript for Transfield’s half-year results included a rundown from management on how it won the $1.22 billion contract to manage the Nauru and Manus Island centres for the government.
”We asked ourselves, did we have a real core competency? The answer was yes; we had expertise on Nauru and with the Department of Defence garrison contracts in Australia that we could bring to Manus.
Was the client a preferred counterparty? ”Yes, we had worked with the Department of Immigration and Border Protection before and had a good relationship built on our delivery performance.” Was the work in a sustainable market? ”Yes, we see signs that there will be increasing opportunities in the areas of outsourced social services.”
We wonder if the Abbott government is aware of the expected growth in ”outsourced social services”. The win should help prop up the company’s earnings next year. Transfield made a net profit of $4.6 million in the six months to December 31, a turnaround from a loss of $246.7 million in the prior corresponding period. The loss in the prior corresponding period included $275 million in impairments.
Transfield Services’ Half Year Results Report is available here.
That Report was made a fortnight ago.