![]() “These sorts of things aren’t good for brand,” Mr Tompkins said.įormer Downer staffers are alleged by ICAC to have received cash kickbacks for awarding contracts to specific companies and inflating the value of contracts. Mr Tompkins discussed the probe into alleged corruption on rail projects by NSW’s Independent Commission Against Corruption (ICAC) at the meeting, and said Downer wants to do a “proper customer and brand engagement piece” when ICAC’s inquiry is finished, according to one investor present at the briefing. Downer has been battling with rising costs for labour and building materials. Investors said the company should be able to reach the target if it targets high gross margins and controls costs. “They need to make sure that they execute on it,” one investor said.ĭowner is targeting group earnings margins of more than 4.5 per cent in fiscal 2025, double the 2.2 per cent it delivered in the first half of 2023. But investors who were at the briefing in person said the company pitched improved profit margins and better risk management to shareholders. Journalists were not permitted to attend. Mr Tompkins and other executives met with several dozen shareholders and analysts at an investor day in Sydney on Thursday, Mr Tompkins, who has only been CEO for two months, is under pressure from investors to turn around Downer’s business and boost its share price, which has lost one-third of its value over the past 12 months. The troubled company will cut 400 full-time jobs by mid-2024 as it tries to boost earnings and restore investor confidence after a series of profit warnings and accounting mishaps that forced the departure of several directors and executives, including former chairman Mark Chellew.ĭowner EDI CEO Peter Tompkins attends the company’s investor day at the Amora Hotel in Sydney on Thursday. Downer EDI chief executive Peter Tompkins has told investors an anti-corruption probe hasn’t been good for the contractor’s brand and that it will engage with customers after the investigation is finished.
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