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Sedgman says it expects to continue its track record of growth, which will likely be driven by existing contracts, the forecast expansion of capacity through new coal mine developments in Australia and the refurbishment of existing infrastructure.
The company’s shares started trading on the ASX yesterday, and although the stock dropped 10c to finish at $A1.30, its market capitalisation increased by $52 million.
As at mid-morning, Sedgman was again trading up 4.5% on today’s opening price, at $1.36.
Board chairman Russell Kempnich said the company’s immediate focus was to take full advantage of the opportunities available in Australia.
“The current boom has focused our resources in Australia, and we see this as an opportunity to work with companies that have overseas interests,” he told the Australian.
The company’s $40 million initial public offering closed on June 2, a week earlier than scheduled, due to strong support from investors.
Proceeds from the IPO will be used for working and development capital requirements and to repay liabilities.
Sedgman is taking full advantage of the current resource boom, recently signing a new contract with Queensland’s New Acland Coal, a subsidiary of New Hope.
Under the contract, Sedgman will design and construct a 350 tonne per hour capacity Coal Handling and Preparation Plant to support the Stage 2 expansion of New Acland’s opencut mine.
The new facility will boost capacity at the New Acland Colliery from 2.5 million tonnes per annum to an estimated 4Mtpa.
Sedgman is also involved in the Dawson mine for Anglo Coal and the Hale Creek expansion for Rio Tinto.
“With the engineering services market forecast to continue its robust trend propelled by new coal developments, capacity upgrades and the refurbishment of existing facilities, Sedgman will be in an ideal position to maximise its market position on all levels,” managing director Peter Hay said.
The company expects to continue its growth, with earnings before interest and taxes forecast to double in fiscal 2006 and rise 25% in the next fiscal year.
