The cash strong company, with $114 million in the bank, struggled during the year with a massive tax bill of $15.7 million, mainly attributed to project losses incurred in overseas countries, which stripped the 8 million pre-tax profit figure.

Third party issues with two major overseas projects also resulted in delays in revenue recognition which could not be attributed to the year end accounts. However, all costs associated with these claims were brought to account for the reporting period.

The upside is that any revenues and profits from the two projects will now flow into the 2003-04 financial results and work in hand at the end of July was $718 million after the Group secured a number of small to medium projects since the balance date.

"The implementation of management and structural changes which have been underway for some time is nearing completion as part of the first phase of the program aimed at rebuilding the Group's profitability," David Singleton, managing director of Clough, said today.

"Our core focus will be three-fold: instilling a performance-based culture, achieving sustainable growth and developing and capitalising on the Group's people capabilities.

"World oil prices are continuing to stay high, driving growth and opportunities in all oil and gas provinces of the world. That's good news for the group's oil and gas business which continues to perform well.

"Clough should be profitable in 2003-04 but it will take a little time to return to the profitability levels of the past," said Singleton.