Runge profits rise again

GROWING demand for technology in Western Australia has underpinned another successful year for mining software consultancy Runge, which nearly doubled its underlying profit.
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Runge at work.

Brooke Showers

Runge’s preliminary unaudited net profit after tax was between $A6.2 million and $6.4 million for the 2012 financial year, increasing on the $3.6 million NPAT reported last financial year.

Net operating revenue increased by 15% to $99.3 million compared with $86 million reported in the 2011 financial year.

License sales also grew this year, rising 10% from $9.9 million last year to $10.9 million.

Runge’s net cash jumped from $3.8 million in 2011 to more than $7 million this financial year.

There was only a marginal increase in the business’ operating earnings before interest, tax and amortisation for the year which was around $200,000 higher than the $9.3 million announced in the 2011 results.

Runge said the solid growth in revenue was underpinned by demand for its technology and services in Western Australia and overseas offices.

“Continued growth in revenue, in particular from our technology suite in the past year denotes sustained demand for our products and expertise,” Runge managing director David Meldrum.

“However, a competitive market for mining professionals in Australia continues to be a challenge for the group.

“We have experienced a slowdown in demand for consulting services in Asia in the second half of the year, which may not recover to its previous growth rates in the near future.”

To minimise the impact of this, Runge was aiming to improve business systems and processes for the delivery of its technology services to maintain profitability into next year.

Meldrum said the improvements would ensure Runge could improve its margins in the future.

Revelling on a solid run, Runge also boosted its profit in the 2011 financial year compared to 2010, after improving sales and developing resource projects.

In 2011, the company’s NPAT was up 57% or $1.3 million on the $2.3 million it collected for the 2010 financial year.

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