Going going gone … Mining contractor Brierty placed into administration
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Mining services provider Brierty has collapsed and been placed into administration.
Brierty (ASX:BYL), which provided civil construction and mining services, was suspended from ASX trade after announcing KPMG had been appointed as administrators.
Brierty lost $2.9 million last year after revenues collapsed by 40 per cent to $126.4 million.
The company reported negative $6.1 million cash at the end of June.
Today’s Brierty announced it was unable to continue due to “a number of factors which have adversely impacted on cash generation and profitability”.
These included “difficulties in executing civil works profitably during the recent winter quarter” and an inability to secure new work “in the near term due to uncertainty in the market as to the company’s financial position”.
Brierty’s chief financial officer — the controversial, chair-sniffing former WA Treasurer Troy Buswell — resigned last month after leading a turnaround strategy and securing an extra $6 million in loan.
The business would continue to operate while KPMG went through the books.
A Brierty subsidiary, Bellamack, was unaffected.
The administrator has been contacted for comment.