Less than four months after acquiring Barminco, Ausdrill says the integration of the two businesses is on target to deliver synergies of around A$11 million/y ($7.8 million/y) from its 2020 financial year.
This exceeds the previously stated target of A$5 million and is representative of both the new business structure Ausdrill has implemented and its growth strategy, the company said.
For the six months to end-December, Ausdrill said revenues were up 45.6% year-on-year to A$640.2 million, while underlying earnings before interest and taxes rose 27.6% to A$67.1 million. These results included two months contribution from the Barminco acquisition, which also included an additional 50% share in the two companies’ AUMS joint venture.
Ausdrill Managing Director, Mark Norwell, said the half-year results demonstrated the strength and diversity of the expanded Ausdrill group. “Importantly, the expanded Ausdrill group also secured over A$2 billion in new work since July 1, 2018, and successfully integrated the Barminco business, ensuring the company is set to deliver on its FY2019 guidance and is well positioned for FY2020.”
“Looking forward, we now have a more diverse and less capital-intensive group and have achieved this whilst maintaining a strong balance sheet that supports dividends and provides the flexibility to deliver on the strategy that has now been established.”
Ausdrill said the acquisition of Barminco made the company Australia’s second-largest mining services company.
Recently appointed Managing Director, Mark Norwell, said: “Ausdrill has done a great job in growing into a multi-national mining services company, but with the acquisition of Barminco and a refreshed structure, we have the opportunity to ensure the new Ausdrill has the best standards, a leading safety culture, and a constant focus on efficiencies to deliver for our customers, shareholders, communities and our 7,500 committed employees.
“In particular, a key focus is to transform our above ground operations in Africa, divest businesses that do not fit strategically, and ensure we are achieving best practice in the way we win and deliver work for clients across the group.
“We are also looking at ways to grow the business, such as expansion into new markets where we can have a competitive edge and into adjacent services that complement our existing portfolio.
“We expect to see continued strength in our core markets, particularly underground, and the Company remains on track to deliver its FY19 guidance of $98 million underlying net profit after tax.”