Cardno's result was within the guidance provided by the company last November. Although revenue was comparable on an AUD basis, on a constant currency basis revenue fell 9.8%. Actions being undertaken under the strategic review have yet to flow though to profit. We expect over the coming six months to start to see benefits of the review to flow though to the company's financials. The company did highlight that it has made significant progress in implementing the actions associated with the strategic review.
Operationally, Cardno is seeing a stabilisation of demand in the Asia Pacific region (including Australia), as effects from the mining downturn become less significant (although infrastructure and urban development haven't improved significantly). North American oil and gas, and Latin America demand, has impacted Cardno's America's region result in the half (revenue and profit), with the company responding by restructuring and reducing other costs. Pleasingly backlog remains strong.
Cardno, underneath the recent operational difficulties it has experienced, is a good business. It is a good business that will reward shareholders in coming periods as the turnaround plays out.