Walter Diversified makes promising debut

WALTER Diversified Services made its ASX debut Thursday, opening at $A1.79 and closing at $1.66 after offering an initial $1.50 share price in its $65 million public float.

Staff Reporter

With plans to consolidate its position as a leading coal mining service provider and expand in other areas, Walter’s future looks promising.

In the company’s prospectus, directors told investors the company was well positioned to benefit from the increasing demand for mining services – stemming from a continuing global demand for commodities, the industry trend towards outsourcing and shortages of skilled labour and equipment.

The group said it expects to grow its operations significantly during the current financial year, with pro-forma revenue forecast to increase from $122 million in fiscal 2006 to $214 million in fiscal 2007.

Over 83% of the company’s fiscal 2007 forecast revenue is expected to be derived from either existing or currently contracted projects.

WDS provides specialist services to the underground coal mining industry as well as providing pipeline construction and maintenance services in Australia – with its services provided primarily via two wholly owned operating subsidiaries: Walter Mining and Diversified Construction.

Shares in WDS were trading at $1.62 mid morning.