Australian mining equipment manufacturer Austin Engineering expects to double underlying net profit on the back of a 60% year-on-year rise in sales in the first half of FY24 after improving the size and predictability of its order book in the year just ended.
The company, which makes mining dump truck trays and loader buckets, saw a 27% year-on-year increase in FY23 revenue to A$258.3 million, and 9.5% yoy lift in EBITDA to $31.3m.
FY23 net profit after tax was at $18.1m versus $16.7m in FY22.
CEO David Singleton said Austin’s order book grew 35% yoy to $143.7m and recurring revenue represented 89% of that total. He said the “exceptionally high” level of repeat business reflected robust demand across the Americas, Australia-Pacific and EMEA regions.
“This recurring revenue stream gives us strong visibility and confidence in the future given the fast turnover nature of our order book,” Singleton said.
Austin’s acquisition of Mainetec was paying dividends with mining buckets and other products now contributing circa-29% of group revenue versus 16% a year ago. Sales in this area would be “a growth driver through FY24”, Singleton said.
“Internal forecasts indicate further growth in this sector is anticipated to continue in Australia, with significant opportunities in the Americas also now being identified,” he said.
Austin is forecasting FY21 first-half revenue in the range $120-140m, up about 60% versus FY23 H1, while NPAT guidance is $10-12m, up c100% yoy. The company’s FY24 opening order book is at 50% of forecast full year revenue, compared with 42% of actual revenue at the start of FY23.
Singleton said Austin was on track to be debt free in FY24.
The ASX-listed company’s share price is down about 5% in the past month at 26c, capitalising it at $155m.