MATRIX Composites & Engineering expects a fall of five per cent in its forecast revenue for the 2015-2016 financial year as demand for drilling equipment drops off, the company has announced.
Matrix said it expected revenue of about $95 million for the year, down from its earlier guidance of $100 million, after moderating its production rate more than previously expected.
The company also expects to report underlying earnings before interest, tax, depreciation and amortisation of about $11.3 million before non-recurring costs for the financial year.
Matrix had recorded non-recurring costs of $3.2 million up until 30 April, primarily attributed to redundancies and loss on sale of surplus property assets.
Company chief executive Aaron Begley said the company was gaining traction with new products, which he said allowed producers to cut costs.
“Meanwhile, Matrix’s outlook remains positive over the medium to long term despite the short-term uncertainty,” he said.
The company expected to repay its term debt by 30 June and has reached an agreement with its bankers for ongoing loan facilities of $20 million on revised terms to support the business.