Bradken stocks are in free fall as work fades in mining services

Getty/Christopher Furlong

Fading investment and dwindling projects in the resources sector has started to bite on the business of mining services companies.

Engineering group Bradken’s share price slumped after it posted a 64% fall in underlying profit to $13.8 million for the first half of the financial year.

The company decided against issuing a dividend.

Sales revenue was down 12% to $495.4 million. Statutory Net Profit After Tax was significantly impacted by a number of one-off charges relating to a restructure. This meant a Net Loss After Tax of $92.6 million.

Volatility in commodity and mineral markets persisted in the first half, the company said.

Managing Director Brian Hodges says he expects a slight increase in overall sales revenue in the second half.

The company’s restructuring is on target with $21 million of cash cuts for 2015, growing to $33 million in 2016.

Last month two private equity firms pulled out of a $900 million takeover bid for Bradken because of volatility in commodity and financial markets.

Braken’s shares are trading at $2.40, almost 24% down.

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