“The company now expects a break-even result for the half year to 31 December 2014 with revenue between $75 million and $80 million,” Mastermyne said in a trading update yesterday

“The lower than expected first half result is attributed to the delays in the sales pipeline, increased tendering costs and the subsequent effect on equipment utilisation.”

It is expecting revenue of $80-85 million for the following half-year period at this stage.

“Whilst there is an attractive sales pipeline of additional work in hand, in the current coal market environment it is difficult to predict the timing of commencement of this work,” Mastermyne said.

On new additions to the order book, Mastermyne said it is in the final stages of renewing a major project in Qld and has secured an extension to another project in NSW.

“These two contracts are significant for the order book and the company will release further information to the market when the contracts are finalised.”

Mastermyne’s profit margins have been affected by timing delays with key contracts it expects to land this year.

“In particular delays continue to be experienced in the underground roadway development projects which will result in a continued low utilisation of the company’s major mining development equipment into the second half.

“The company is continuing to work closely with its customers around the timing of these new projects to ensure mobilisation can occur as soon as possible.”

Mastermyne shares were down 7% to 40c by yesterday afternoon.