ASX listed services provider, Oakton, (ASX:OKN) has reported a ‘disappointing’ first half to its 2011 financial year.
In line with the warning the services provider released in November, Oakton experienced a 29 per cent decrease in net profit after tax to $7.3 million for the half year ending December 31 when compared to the previous corresponding period.
Revenue also fell 4 per cent to $90 million, and earnings before tax decreased 32 per cent to $11.2 million.
Poor performance from the company’s Victorian branch, and a $2.1 million legal expense over a dispute with Tenix were the chief contributors to the poor result.
"Disappointingly we have not met expectations in our Victorian operation, and this has materially impacted our results for the reporting period," Oakton managing director and CEO, Neil Wilson, said in a statement to the ASX. “As previously advised, we have implemented a performance improvement program for Victoria and as a consequence we expect an improved outcome in the final quarter of FY11.”