BURIED TREASURE BRINGS RECORD PROFIT TO CAMPBELL BROTHERS
Written on the 30 May 2012
BOOMING mining activity has been praised for lifting Campbell Group’s net profit to a record $222.4 million for the year ending March 31, 2012.
The ASX-listed Milton chemical tester’s result reflects a 68 per cent increase on the previous fiscal period, in line with guidance provided during November 2011.
Revenue was up 27 per cent to $1.4 billion, fuelled by higher profit contributions and margins from the group’s ALS testing and inspection business.
“The ALS Minerals division delivered exceptional growth in financial performance during the year, processing a record number of samples in an environment of increasing global mineral exploration activity,” says managing director Greg Kilmister (pictured).
“Strategic expansion by the division over the past two years, in the form of both acquisitions and capital investment, has improved its capacity, breadth of service offering and market reach enabling the business to service a growing market successfully.
“The acquisition of the Stewart Group completed in July 2011 added a valuable suite of metallurgical and inspection services as well as expanded geographical reach to the division’s capabilities.”
Campbell Chemicals profits improved despite lower revenue after its 2010 sale of Cleantec. The Reward Distribution hospitality supplies division returned to profitability in spite of tight and competitive market conditions.
“Significant capacity and operational efficiency has been added to the Australian operations following the relocation of the Ipswich laboratory to Brisbane,” says Kilmister.
He is confident the group will continue benefitting from recent acquisitions and ALS Group’s restructuring to four key divisions.
“The recent acquisition of the Eclipse Scientific Group in April 2012 will contribute strongly to the company’s result in the 2012/13 financial year [with] capacity increases, the introduction of new technology and the continued refurbishment of existing facilities,” he says.
“ALS has been reorganised into four global business divisions [minerals, life sciences, energy and industrial] … This new structure creates the platform from which the company can continue to grow successfully by increasing its prominence.”
The weaker Australian dollar is hoped to improve foreign earnings, which dwindled after the exchange rate last year hit 95 US cents a unit.
The Board of directors has approved a half-franked dividend of $1.30 per share to be paid on July 2, representing a 73.3 per cent increase on the previous financial year.
Company shares dropped slightly today to $56.23 per unit.