“We’re going to stick to our core markets and ensure that the work we sign up to will deliver the tendered margins or more.” “The way that we get there is through consistency.”ĭowner is letting “opportunities go” as it becomes more selective about what projects it pursues, he added. Some $100 million of cost-cutting will get Downer “match fit” and help it lift profit margins, but most of the forecast improvement will come from disciplined bidding and delivery of work, he said on Thursday. One former Downer project manager has testified before ICAC that the online training was a “tick and flick” exercise that he didn’t remember. “We must be better at earlier identification of intentional conduct that tries to circumvent our processes and that is the focus of our review.”ĭowner provides anti-corruption training to employees, but they can choose whether to do the training in-person or online. “And those individuals do not represent the integrity of our organisation.” “What those five or six dishonest individuals have done makes me very angry,” Mr Tompkins said. It has hired an external firm to review its policies for dealing with subcontractors, and is examining why allegedly corrupt conduct wasn’t detected earlier.
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Mr Tompkins told The Australian Financial Review after the briefing that the company was reviewing how to identify dishonest, illegal and corrupt conduct.
ICAC’s probe is investigating projects that Downer had been hired by NSW’s transport agency to manage and has been interviewing witnesses over the past six weeks.ĭowner was in charge of subcontracting work out to other companies to complete the projects. “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.
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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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