LogiCamms earnings forecast to grow

ENGINEERING specialist LogiCamms expects earnings before interest, tax, depreciation and amortisation for the 2012 financial year to tip in at more than $A10 million on the back of a better than expected second-half year performance.
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Lauren Barrett

The company, which is based in Western Australia, reported a $A4.7 million profit for the first half of the 2012 financial year, but expected to see that figure increase over the second half of 2012.

LogiCamms managing director Steve Banning said it expected EBITDA in the second half of the financial year to surpass the first half by more than 50%.

In addition the company expects revenue to increase about 20% from six months ago. It posted revenue for the first half of 2011 in the order of $56.1 million.

“The company is in good shape and our robust results reflect the strength of our people, core industries, expanding capabilities, and a company-wide commitment to our strategy, vision and values,” Banning said.

Banning said LogiCamms had worked hard over the past year to position it for sustainable growth.

“Our pursuit of key customers, projects, and longer term relationships in mining, hydrocarbons and infrastructure industries is on the right track.

LogiCamms is in a strong position to continue building on this growth to become a market leader in engineering, project delivery and asset management services,” he added.

LogiCamms had previously not announced a FY12 forecast earnings, which Patersons Securities described as positive considering it was about 10% above its expectations.

“The LogiCamms story is very much about backing the ‘new’ management team, which is very high pedigree and is now delivering and proving they have handled the legacy issues that they inherited,” Patersons said.

Patersons has also retained a buy recommendation for the company and said it planned to revise its $1.41 target price upwards following a meeting with LogiCamms’ management.

Shares in LogiCamms were up 6.12% to 1.04c in afternoon trade.

This article first appeared in ILN's sister publication MiningNews.net.