Macmahon underwent a major identity change in 2013, with the company offloading its construction arm to Leighton Holdings in favour of growing its mining division. Management changes at the top were also undertaken, with former chief executive Nick Bowen quitting in September in the wake of an earnings downgrade.

It was also a year of consolidation, with support functions centralised and cost-savings achieved.

Macmahon said it had booked an overall consolidated after-tax loss of $29.5 million, including a $73.1 million net loss after tax from its decision to discontinue its construction operations.

This compared to a record profit after tax of $56.1 million in the 2012 financial year.

The bottom line loss of $29.5 million was higher than the forecast net loss of $10-20 million announced in February, which Macmahon blamed on the take-up of non-cash provisions for disputed claims, doubtful debts and asset impairment for 2013.

The bright spot for the company was its strong mining performance, with Macmahon achieving record revenue of $1.2 billion, up 33% on the previous corresponding year.

The result was underpinned by strong performance across its operations as well as undertaking the ramp-up of the $1.8 billion Christmas Creek mine expansion in the Pilbara and the $900 million Tropicana gold project.

In addition, its underground mining division was awarded the sixth contract extension at BHP Billiton’s Olympic Dam mine, with the company approaching its sixth year on site.

While Macmahon said its Southeast Asian operations continued to perform well, the stagnant Mongolian coal industry and low prices meant its operation in the country was producing less than expected.

Profit after tax from continuing operations of $43.6 million increased by almost 19% in 2013. However, the company will refrain from paying a dividend.

Meanwhile, EBITDA tipped in at $67.5 million, down from $177.8 million year-on-year.

The general consensus was that 2013 was an extremely challenging year for the contractor. This was reflected in its employee numbers, with group numbers falling from 4791 people to 3495 this year.

While Macmahon CEO Ross Carroll labelled the overall financial result disappointing, he said the company was well-placed to deal with challenges facing the market.

“Our $3.2 billion order book reflects a high level of secured work and provides a solid base on which to pursue new work in this highly competitive environment,” he said.

Carroll said the premature end to its contract at the CSA copper mine in New South Wales in June was a huge disappointment, with provision for disputed claims related to this contract. Macmahon has started settlement negotiations with Cobar Management and is confident it will be able to make a substantial financial recovery.

“With the CSA dispute, we’ll be fighting that very strongly and we’d be hopeful of a substantial recovery in FY14,” Carroll said.

Earlier this year, the company recorded a death at the CSA copper mine in New South Wales, marking Macmahon’s first in seven years.

Looking ahead, Macmahon sees opportunities in the market, but notes competition will continue to intensify.

“This, along with customer requirements for cost-reduction, will continue to put pressure on our margins,” Carroll said.

“We expect market conditions to continue to deteriorate.”

But Carroll pointed out that the company’s low-cost commodity focus and close working relationships with its clients would ensure its order book remained strong.

“Given the declining market here in Australia, the focus domestically is to secure repeat business with our current client base,” he said.

“We will also attempt to win new business, but we won’t be buying jobs at low prices.”

But Macmahon is confident that its troubles are in the past.

“2013 has been an extremely challenging year for the company … we recorded an unacceptable loss,” Carroll said.

“We would hope that this is the last bit of news we deliver for some time.

“The company is now in good shape to move forward, albeit in a very tough market.”

At the end of the June, Macmahon had $153.5 million cash on hand.

Macmahon fell 20% soon after the market opened and was last trading down 17.1%, to 14.5c.