The company, in the throes of fending off a hostile takeover from US-based Triple Point Technologies, also has announced two sales – including the first from its North America office.
The North American sale was to Canada’s largest export coal terminal Westshore Terminals, which chose Qmastor’s port suite of products. These include PortVu, iFuse and Qmetrics and will provide Westshore with a bulk terminal management system that will form a critical part of its operations.
This also is Qmastor’s first PortVu client deployment outside Australia.
The other sale was to Vale for its Moatize coal operations near Tete in Mozambique. The order comprises Qmastor’s Pit to Port, SMS3D and iFuse systems.
Other highlights from Qmastor’s shareholder guidance include international revenue growth to 37% of total, more than double the 18% in the 2009-10 financial year and a forecast record revenue result for June.
Another shining light is the performance of Algosys, the Canadian software company Qmastor acquired last year. Algosys’ profit before tax is expected to be 30% higher than forecast.
Qmastor managing director Trent Bagnall said the Algosys operation in Canada also played a role in landing the Westshore deal.
Bagnall also hit back at claims from Triple Point that the Qmastor board had acted unprofessionally in its handling of Triple Point’s original bid and questioned some of the details Triple Point had released.
He said Triple Point had approached the company six months earlier seeking to do some due diligence and Qmastor had assisted with some of its information requests.
Triple Point’s offer came a day after Qmastor had held its board meeting. The offer had a 10-day acceptance period.
Bagnall said the company had asked for an extra two and a half weeks so its directors could properly review the offer.
“They gave us a one-day extension and on the following day withdrew the offer,” he said.
That original offer, Bagnall said, had been much higher than the 23c a share offer that Triple Point eventually put to the market.
Bagnall also took issue with Triple Point’s claims that Qmastor had underperformed.
In its releases Triple Point has pointed to Qmastor’s 2010 results as a sign that the company had underperformed the market.
Bagnall said 2010 was the year the global financial crisis hit the business.
“We had a good 2009 and 2010 was our GFC year,” he said.
“That was reflected through the 2010 results.”
It would appear that the Triple Point takeover bid has been stymied, given it had a condition of gaining 90% of Qmastor. Two Qmastor shareholders – Microequities Asset Management and Coal Link Investments – have announced that they would not be accepting the Triple Point offer. Together they own 11% of Qmastor.
“Once an investor’s announced that they won’t be accepting the bid, then they cannot accept it,” Bagnall said.
Qmastor’s share price hit a high yesterday of 26c. Bagnall takes this as a sign that the market has valued Qmastor at more than the 23c a share Triple Point is offering.
Interestingly, Triple Point’s takeover bid has brought Qmastor to the attention of some other companies.
Bagnall would not disclose the names of the companies but said Qmastor was in discussions with several.
“The TPT offer has really put Qmastor on the radar,” he said.
So how does Bagnall feel about the prospect of a company he has been involved with from the start being sold?
He is quite pragmatic about it, saying that in this sort of market it is not surprising that the offers have been coming.
“There is certainly no reluctance from Qmastor’s board to consider any offer that we believe offers value to shareholders,” he said.