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Watpac Limited share price rebounds 9% to $0.63 after downgrade yesterday

Miners working at the mine with an engineer representing Mineral Resources share price
Image source: Getty Images

The Watpac Limited (ASX:WTP) share price rebounded 9% to $0.63 this morning after a downgrade yesterday.

The mining service company’s share price is down 17% for the year and down 4% over the past 5 years.

According to Google Finance, Watpac Limited is a construction and civil and mining services company. The Company’s segments include Construction, Mining & Civil, and Property. The Construction segment provides building, refurbishment, project management and construction management services across various eastern states in Australia and South Australia.

The Mining & Civil segment is engaged in providing contract mining services and civil infrastructure activities for small to medium projects throughout Australia. The Property segment is engaged in development and trading of commercial, residential and industrial properties. The Company undertakes technical refurbishment projects across a range of areas, including aged care, health, commercial, education, food-related facilities and other construction disciplines.

Shares have been volatile after management revealed yesterday that the company would only break-even this year, despite generating $8.5 million in profit before tax in the previous year. Write-downs are expected to further impact the statutory profit result.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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