RUNGE RESULTS SOLID

RUNGE RESULTS SOLID

MINING technology services company Runge Limited (RUL) has announced NPAT of $1.5 million for the December half, an increase of 26 per cent.

Managing director Tony Kinnane (pictured) says the earnings growth is an indication that the low point in the cycle is now behind the company.

“We’ve been able to re-establish revenues to pre-GFC levels, with growth returning to the Australian and American regions,” he says.

“Demand for Runge’s services is increasing and management’s focus on customer engagement and efficiency across our global consulting footprint is starting to be reflected in the improved financial results.

“EBITA increased by 32 percent on 1H10 to $3.7 million, however the strengthening Australian dollar against the US dollar had an adverse impact on reported results with a foreign exchange loss of $1.2 million recorded in the half year.”

Kinnane says the company’s earning outlook remains positive and should continue to improve.

“With commodity demand continuing to strengthen, we’re seeing increased opportunities and levels of activities across our global businesses,” he says.

“Additionally, we’ve refocused the group on its core global capability and this has better positioned us to build momentum and continue growing earnings.

“We’ve put in place strategies to address the restrictions posed by the tight labour market, including actively expanding our Asian presence where we are seeing a number of attractive growth opportunities leveraging the growing minerals industry in that region.”

The company’s share price increased slightly to 45 cents.

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