COMMERCIAL chemicals maker and testing company Campbell Brothers Limited (ASX: CPB) has posted a $132.2 million record financial result for the year ended March 2011.
The Milton-based manufacturer scorched the market with a 34.4 per cent lift in revenue driving a 75.6 per cent rise in underlying NPAT – up from $75.3 million.
Revenue increased to $1.1 billion from the previous $825.53 million with the results in line with full year guidance.
Managing director of Campbell Brothers Greg Kilmister (pictured) says the result followed the group’s success in preparing for, and benefiting from, a recovery in global business conditions.
“We’ve successfully advanced our business strategy and expanded our analytical laboratory division, ALS, to capitalize on some significant opportunities, including the upturn in global mineral exploration activity,” he says.
“Our investments in strategic acquisitions and increased operational capacity have established a platform from which the Group has launched a significant increase in business volumes.
“It is pleasing to note the strong growth in our financial results were achieved despite the impact of the stronger Australian dollar on our international earnings.”
The group’s expansion strategy accelerated business growth in 2010-2011 and it is expected that additional potential from this strategy will be realized in the 2011-2012 financial year and beyond.
Kilmister says the group will continue to advance ALS’s services further along the strategic path, increasing its prominence as a leading global provider of Testing, Inspection and Certification (TIC) services.
“Acquisitions finalized in the second half of 2010-11, including Ammtec in Australia and Analytical Laboratory Services, Inc, in the US, are expected to make significant contributions in the year ahead, as will the ALS Industrial division,” he says.
Campbell Brothers chairman Geoff McGrath says the results showed the company’s global expansion and diversification strategy was achieving strong results.
“This is a record financial result for Campbell Brothers and it significantly exceeds our previous record result achieved two years ago in 2009,” says McGrath.
“It’s especially satisfying that our strategy to continue expanding and diversifying our global business has achieved these excellent results only one year after there were uncertainties in the global economic environment. “
The group’s new coal testing facility, which opened in Brisbane in April is expected to deliver additional service and technical capabilities at a time when further upturn is anticipated for the coal mining sector.
It’s understood that the divestment of the Cleantec business, finalised last December, will also assist the group to advance the opportunities identified across all business divisions.
The company came in at No. 5 in Brisbane Business News 2011 Top 50 public companies edition with a market cap of $2.8 billion.
CPB shares were down slightly 1.47 per cent to $44.93 today.
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