QMASTOR Limited (ASX:QML) issued an operations and guidance update following the publishing of the Company’s half year results and progress on major projects.
Review of 1st Half FY2011 Results
The directors of QMASTOR announced a record half year revenue of $5.602M ($3.447M 2009) up 59% on the previous period. Net Profit after Tax was $444.3K ($82.9K 2009) for the half. The result was slightly above the previous AGM forecast.
QMASTOR has produced a solid first half result; the result reflects a recovery from previous GFC affected revenues and the international growth strategy adopted by the board in 2010.
“QMASTOR’s revenues strongly improved in the second quarter of the financial year, all regional offices performed in line with the board’s expectations. Our South African office performed particularly well on the back of the recent Exxaro contract win.”, Mr Trent Bagnall said today.
Commenting on the result, Mr Bagnall said, “Highlights included the signing of a major contract with Exxaro Resources Limited. Exxaro is the second-largest South African coal producer with capacity of 45 million tonnes per annum and the third-largest global producer of mineral sands. The Exxaro group will use the software to manage their sales, marketing and logistics of their coal and mineral sands products. This contract validates our international growth strategy of providing local delivery capability and customer services for our clients.
Late in the half QMASTOR acquired Algosys Inc. Algosys is a Canadian software and services company located in Quebec, Canada that specialises in metallurgical accounting software. Its flagship product Metallurgical Accountant has application in mining, processing and smelting operations.
QMASTOR will provide a strong global presence for the Algosys product suite particularly in Australia, Asia and Africa. QMASTOR is pleased to announce that it will be able to provide installation and support capability for the Algosys product suite from our Perth office from early 2011. We also expect to provide similar services from our Newcastle office later in the medium term.
QMASTOR’s new offices in North and South America continue to grow their sales pipelines. We expect new sales from both of these offices in the short term with potential sales possible in the 2011FY."
Outlook Remains Positive
The board has declared an interim dividend of 0.25 cents per share. QMASTOR is expecting a number of new sales in the second half which will produce full year revenues of $13-14 million. This resul t would equate to a full year 2011 EBITDA in the order of $3 million for FY2011.
QMASTOR expects to see further results from the international growth strategy in coming months including sales from our North and South American regional offices. Algosys revenues will also contribute to the second half of the financial year.
QMASTOR’s ultimate goal is to derive 50% of company revenues from international markets by the end of FY2012. We are well placed to make this happen. We believe we are well positioned to continue with our aggressive growth into FY2012 and are confident of our 2012FY target of $20 million via organic growth.