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ANG - Austin Engineering

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What do you get when you go for a capital raising at a 50% discount to the price of the day?
A 50% and counting reversal.
 
From a previous posting of June 2016 :) let me post this one .
Austin has achieved some garage sale to reduce its debt. What a strategy not to make the business going instead of selling as a junk and than bosting of strategies.
Arequipa in Peru who knows is a thriving business place from Cerro Verde Operation ( I have worked from Arequipa in my past life as a Freeport Miner) and forthcoming mines coming around and Austin could not capitalise it. They got rid of Eastern State workshop and brought it into Perth. They hired pnew senior management staff in Sept and new MD, CFO but no reflection on the improvement yet after 5 months until this garage cell. Lets hope that there will be much more with substantial strategic alliance with Macmohan with one director in the board from Macmohan and TOP has increased its stake as a major shareholder.
Thankfully market has responded it well today (considering something is better than nothing) but as a shareholder it is disappointing. They have had a share placement only couple of years back. In that time they had a short fall and chose to give commission to some business friends to buy shortfall instead of giving additional allocation to those shareholders who wanted more. It helped me then as I sold off the existing one (in sheer disappointment ) only to realise massive fall on share price only after a week or so when the SPP allocation finished.
Any way long story short, let us see how sustainable the short term strategical garage sale would deliver to the business and shareholders. Yes, I am a holder (on my second return however)
https://www.asx.com.au/asx/share-price-research/company/ANG
upload_2019-2-6_13-56-48.png

https://www.asx.com.au/asxpdf/20181123/pdf/440l1jj45b54lf.pdf
 
I looked back at my own posting in June 2016 and February this year and what is happening with Austin.
I was dejected with rights not being offered just because I sold XR. I was disappointed but then realised almighty helped me saving my money through the rejection. The price dived down far below the issue price. Austin has been struggling a lot but off late, after a few asset sales, they are giving a steroid injection.

https://www.asx.com.au/asxpdf/20190417/pdf/444d89dh9sjwdz.pdf
Peter Forsyth put some skin on the game by buying 300000 shares.
https://www.asx.com.au/asxpdf/20190503/pdf/444tj7x84xt1ty.pdf
Spheria and LLM became substantial holders and
https://www.asx.com.au/asxpdf/20190424/pdf/444jg4mkq3lphv.pdf
https://www.asx.com.au/asxpdf/20190424/pdf/444j58ynpdrytg.pdf
within two months Discovery sold out. One could argue how come one investment fund decides to quit whereas another invests. I am a little fellow and think it is all about their investment strategy - short term, quick buck or something else - I do not know.
https://www.asx.com.au/asxpdf/20190424/pdf/444jg4mkq3lphv.pdf
The volume is very small so the market is not going to excite on this.
BUT, BUT, what attracted my attention is Austin is turning around now.
It is because of the market update:
https://www.asx.com.au/asxpdf/20190418/pdf/444ds7hpzq3ssn.pdf
The corrected update says, Austin, has increased normalised profit by 52%. If this trend can be continued, then it would probably attract the eyes of investors and speculatively EHL. They have a great synergy to acquire ANG by reducing the OPEX and vertical integration of the business. After long, EHL has become market darling and it could make sense for them. Please note my caution - this is speculative thought and would urge if the chartists can make an analysis of this.
Has the company reached its bottom at 17 cents (What @greggles says :) )?
I am watching to put this as my tip - but no reservation - anyone can pick for a tip. I have just put some money on ANG (just to see the price to slump after I bought) , after some gambling vengeance to make money :)
 
https://www.asx.com.au/asxpdf/20190626/pdf/4463wrk53nwkmh.pdf
This presentation from ANG has some sober and subtle points, if I am reading them correctly. The presentation is much more professional than just a glossy one with constructive lines into it. I was not a fan of ANG for some times, but changing my bias.
  1. Core competencies outlined on page 3 - good and strong. One Austin is the famous statement, I heard from Sam Walsh in 2003, when Sam was the CEO of Comalco /RioTinto . That was a very powerful visionary statement. What it says under Engineeering excellence - strong technical competency to deliver as customer wants - bespoke solution, backed by global presence and manufacturing expertise - some buzz words but certainly company is moving to hone those four pillars to stand out. They also talked of incremental sales - not step up - slow and steady. Good approach after so much of turmoil on mining industry.
  2. Major share holders are funders- so any capital raise is expected to be mitigated in house.
  3. NTA 16.5 cents is good on share price of 17 cents
  4. NPAT is having a good trend. Reduction of net debt is a good sign
  5. Cost competitiveness with good engineering - page 6
  6. Diversified centres world wide - though Chile has been sold. Sadly their business from my favourite place Arequipa in Peru, is to be sold. Those two sales in Americas however contradicts their statement on page 9 - item 1 and page 19. But that will create other opportunities and could be strengthening WA manufacturing. Probably Asia and Africa are the two places now. They have already commenced to transfer from Qld to WA - one centre - economy of sale.
  7. Page 10 does not show a good sign however - looking at the charts until 2021.
  8. They have been focussing on iron ore, coal and copper - now there are other opportunities surely coming.
  9. Acquiring JEC -s a good move. John (of John Cranes - JEC) had a good business from Kalgoorlie and now with his retiring , Austin got a good diversification even EOT crane is a small section and Eilbeck Crane is a good competitor to JEC.
  10. page 14,15, 16, 17, 21 and 22 are the good examples to see the organic strength between ANG and EHL
  11. Page 24- capital management under summary is encouraging unless that could be another capital raise -initiative :)
 
I was trying to follow the trading pattern of ANG.
I noticed the volume of trade has been an unusual (for me) volume. Some days few hundreds and then the other day more than millions.
Probably the big volumes are driven by institution substantial purchases.
Here is a snap shot and the Excel shows the details of trade volume.
Of course, I want ANG to rise and my tip to excel (wish only :))

upload_2019-7-11_21-17-55.png
 

Attachments

  • Trade_history_ANG__11__Jul__2019.xlsx
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With only looking at the charts for my picks, I have chosen ANG as 1 of my 4 picks in the Tipping Competition for Full CY 2022. Someone has to come to the aid of @Miner ;).
Thought I'd post a quick chart recording my thoughts at this time.
I looked at this and nearly chucked it out that many times but it's in my 4 so fingers crossed and it is what it is. :rolleyes:
.
There was some interest in 2016 and there has been a lot of interest over the 3rd quarter of last year with price and volume increasing and mostly stronger than the XAO over the last 6 months. Short term MA now above the Long term MA with price just above both at the moment.
.
Will it head up towards the $0.66 level by the end of this year? I don't know if it will but if it does it will be a great return, 200%

ANG.png
 
now i wouldn't call myself a 'fan' of ANG more like a long-suffering holder my average SP is 27.4 cents

after buying in February 2014 ( @ $2.80 ) May 2014 ( @ $ 1.49 ) . March 2021 ( @ 15 cents ) and May 2021 ( @ 12.5 cents )

now this isn't all ANG's fault Vale building crappy tailings dams was a contributor and Brazil is taking it's sweet time to get back into serious mining output ( partly hindered by the virus response )

it would be nice to see ANG get to 27.5 cents a share this year ( without resorting to a share consolidation ) , but will not be holding my breath .

take a lot of care the mining investment cycle is way out of the usual pattern , and mining operators MIGHT spend their reserve cash on 'green-energy initiatives ' ( like electric trucks or hydrogen powered ones , or just upgrading power plants )

DYOR
 
debtfree said:
With only looking at the charts for my picks, I have chosen ANG as 1 of my 4 picks in the Tipping Competition for Full CY 2022. Someone has to come to the aid of @Miner ;).
Thought I'd post a quick chart recording my thoughts at this time.
I looked at this and nearly chucked it out that many times but it's in my 4 so fingers crossed and it is what it is. :rolleyes:
.
There was some interest in 2016 and there has been a lot of interest over the 3rd quarter of last year with price and volume increasing and mostly stronger than the XAO over the last 6 months. Short term MA now above the Long term MA with price just above both at the moment.
.
Will it head up towards the $0.66 level by the end of this year? I don't know if it will but if it does it will be a great return, 200%

View attachment 135137
Click to expand...
@debtfree - LOL for breaking the drought after 2 years :).
Let you be the winner for CY 2022 making it a real Happy Year .
 
divs4ever said:
now i wouldn't call myself a 'fan' of ANG more like a long-suffering holder my average SP is 27.4 cents

after buying in February 2014 ( @ $2.80 ) May 2014 ( @ $ 1.49 ) . March 2021 ( @ 15 cents ) and May 2021 ( @ 12.5 cents )

now this isn't all ANG's fault Vale building crappy tailings dams was a contributor and Brazil is taking it's sweet time to get back into serious mining output ( partly hindered by the virus response )

it would be nice to see ANG get to 27.5 cents a share this year ( without resorting to a share consolidation ) , but will not be holding my breath .

take a lot of care the mining investment cycle is way out of the usual pattern , and mining operators MIGHT spend their reserve cash on 'green-energy initiatives ' ( like electric trucks or hydrogen powered ones , or just upgrading power plants )

DYOR
Click to expand...
@divs4ever - just curious if you have had any sell of ANG after buying @$2.80 in 2014?
As a miner, I used to like the strength of the company and especially when they took their business out of Qld to WA. At one time, there was a serious opportunity for me to join the team (some 3 years back ) but my little knowledge of the industry, deterred me from doing so.
Recently David has got a massive performance right with anticipation he will turn over for his good and company's good.
Time is going to tell its employees, suppliers, shareholders, and stakeholders.
I have sold out my investment on ANG some years back with little margin and am now a sideline watcher. The volume of transactions has not been great and that is reflected in no posting on this thread for two years until @debtfree sprinkled some water from his water can to rekindle interest in this thread.
Probably the success of Rio's 5 years contract is the dangling carrot for the ANG and its CEO
PS - this photo however shows an extremely poor safety concern of ANG with two of the three pictured (includes RTIO CEO and WA Premier :mad:) taking a photo without wearing safety glasses. Forget about the hard hat when standing on a workshop.
1641213568153.png




 
sell .. NO i stayed too long expecting a normal mining investment cycle , and this cycle has been anything but normal

and oh yes those press release photos .. that would normally have the blue-collar bloke dismissed instantly , i remember the safety protocols well with my brush with heavy industry ( and how some ignored them without repercussions )

one might hope at least the photographer was wearing proper safety gear

but sorry RIO contracts , haven't been necessarily a good thing with other companies i have held in the past , they seem to have their share of messy disputes

but i guess time will tell

i hold and hope ( that Vale will start making money again )
 
Austin reports spike in orders at end of H122

Austin Engineering Limited (ASX: ANG, ‘Austin’ or ‘the Company’) is pleased to announce that it received over $60 million of orders during November and December 2021, ending the first half of the financial year with a strong order book. At the end of November 2021 Austin’s order book was 19% higher year-on-year.

The new product orders are for over 100 truck body’s, excavator buckets, water tanks, mine chutes in addition to repairs & maintenance works and were received across Austin’s operations in Asia Pacific, and North and South America. Delivery of new products will be to Canada, USA, Mexico, Chile, New Zealand, Indonesia and both the West and East Coast of Australia. Such a broad delivery profile strengthens Austin’s strategic expansion and growth in these markets.
The increased sales activity comes as Austin continues to progress a number of initiatives across its operating regions. Austin’s new facility at Fort McMurray in Alberta, Western Canada commenced operations on 1 December 2021. Four of seven truck body’s being manufactured on site have been completed and are ready for delivery to customers in the region.
Alberta has one of the largest concentrations of heavy haul trucks in the world and the new facility is ideally placed to provide a much enhanced local level of customer support to what was previously possible. Austin will undertake a $450,000 expansion of its La Negra facility in Chile to accommodate an anticipated increased workload in the second half of FY22.
The facility has been operating at high utilisation rates for some months now and a capacity expansion is deemed necessary. Austin expects the investment to be fully paid back in the second half of FY22.
A recent expansion of truck body, final build and assembly locations in Eastern Australia and New Zealand has led to a competitively won new order with global gold miner OceanaGold Corporation in New Zealand with deliveries to commence in the second Qtr. FY22.
The order for over 20 body’s uses Austin’s recently developed modularised truck body designs developed to overcome shipping logistics issues, with final build to be undertaken close to the mine site. In addition, Austin’s previously announced partnership with Melter in Mexico has led to further orders for a large drag line bucket and other equipment, further reinforcing the strength of this regional relationship under Austin’s “hub and spoke” strategy being rolled out globally.
Austin CEO and Managing Director, David Singleton said: “We are pleased to see increasing momentum in sales activity across the board for both new products and repairs, and the recent uptick in orders sets Austin up for a strong sales performance in the second half of FY22. With a strong order book, and strong commodity prices, our facilities are operating at high levels of throughput as we start the new year.
I am particularly pleased that our recent initiatives aimed at improving cost competitiveness and driving sales, have so rapidly led to an increase in orders. It gives me confidence in our approach and forward strategy. In addition, we will be launching some updated products in the current half with improved efficiency and safety features which, we believe, will further cement our leading position in the mining products industry

DYOR

i hold ANG
 
“Order book growth has been recorded in all of Austin’s operating regions across Australia, Indonesia, North America and South America. Increased demand for truck trays and buckets, and an increase in contract wins has contributed to the result”
Market Statement, Austin Engineering Ltd
 
Dona Ferentes said:
“Order book growth has been recorded in all of Austin’s operating regions across Australia, Indonesia, North America and South America. Increased demand for truck trays and buckets, and an increase in contract wins has contributed to the result”
Market Statement, Austin Engineering Ltd
Click to expand...
7% increase on expected earning has been cheered by market by 8% price rise already :)
 
Austin reports 26% increase in revenue -
profits at multi-year high H1 FY24
Key Metrics and Highlights1
 Revenue up 26% to $143.6 million on order book strength.
 EBITDA up 70% to $20.8 million, driven by higher sales and operational performance.
 EBITDA margins 14.5% up from 10.7%.
 NPAT $15.0 million up 2.8 times and up 36% from original guidance.
 Operating cashflow $6.9 million, expected to increase in H2 FY24.
 Net debt of $11.4 million, on track to be debt-free in FY24
 Order book at a multi-year high of $184 million, up 16% reflecting increased investment in customer support and sales.
 Reinstated interim dividend of 0.4 cents per share on strong Group cash outlook.

Full Year 2024 Guidance2
 FY24 revenue of $310 million - $330 million, up ~24% from FY23.
 FY24 NPAT of $31 million - $33 million, up ~75% from FY23.

i hold ANG

( part of a much larger release )
 
CEO and Managing Director Arrangements

Austin Engineering Limited (ASX: ANG, ‘Austin’ or ‘the Company’) is pleased to announce that it has reviewed and agreed a revised remuneration package for Austin’s CEO and Managing Director, David Singleton, for the financial year ending 30 June 2025.

As set out in the Company’s ASX announcement of 14 July 2021, Mr Singleton was initially appointed with a package heavily weighted towards growing Austin’s share price (via an award of options and a base pay set at less than half that of his predecessor). That arrangement was fixed for three years and has been reviewed in accordance with Mr Singleton’s employment agreement.
The revised arrangements are summarised in Appendix A and will apply with effect from 1 July 2024.
Additionally, following discussions with Austin’s Board, Mr Singleton has advised of his intention to remain as Austin’s CEO and Managing Director until the end of FY25, after which time he has indicated an intention to retire from his executive position.

Mr Singleton has been CEO and Managing Director of Austin since July 2021 following a short period where he undertook a strategic review of the business and acted as interim CEO.
He was previously a Non Executive Director of the Company between 2019 and 2021.

Ending his tenure at the end of FY25 will allow the Board to complete a thorough internal and external search for a successor for Mr Singleton and permit sufficient time for a handover of the role and responsibilities.

Austin Engineering Chair Jim Walker said: “The Austin Board respects David’s decision to retire from his CEO and Managing Director roles at Austin at the end of the next financial year (FY25). We appreciate the long lead time given by David in which to search for, and hand over to, a suitable replacement who has the strong credentials necessary to steer the company through the next phase of its growth.

David has ensured that we have a much stronger executive and business leadership team to manage a seamless handover whilst also being focused on delivering the business targets in FY25 driven by the very strong order book growth that has been achieved across the different business units 1.

Equally importantly I know that David is focused on setting Austin up for further growth in FY26 whilst ensuring that the business continues to invest in its future."

-ENDS

i hold ANG
 

Austin Engineering (ASX: ANG) Positioned for Growth: Insights from Oscar Oberg​


News & Insights | Investment Updates & Market News | Wilson Asset Management

Stay up-to-date with WAM news and insights. Get the latest investment updates and Australian share market news from Wilson Asset Management.
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i hold WAX ( 'free-carried' ) and ANG

( and am unlikely to add to either holding any time soon )
 
FY24 update -

Strong cash conversion and order book

Austin Engineering Limited (ASX: ANG, ‘Austin’ or ‘the Company’) is pleased to make the following trading updates prior to the release of its FY24 full year results on 27 August 2024.
 Strong operating cashflow, expected to exceed $37 million demonstrating significant profit to cash conversion.
 Net cash position of $9.6 million improved from a net debt position of $14 million at end FY23.
 Strong EBITDA percentage margin improvement, continued delivery of y-o-y efficiency gains.
 Order book up ~30% y-o-y to $186.3 million (30 June 2023: $143.7 million).
 Austin re-confirms previous NPAT guidance of $31 million - $33 million, up ~75% from FY23.1

Austin CEO and Managing Director, David Singleton, said:“Austin has had another year of solid operational and financial growth as our Austin 2.0 strategy has continued to deliver improvements across the business.“We’ve made investments in building our sales, customer support and management teams, which have increased sales, utilised our expanded capacity, and generated continued order book growth.“

We are pleased to report a stronger-than-expected cash position at the end of FY24.
At the half year, we reported net debt of $11.4 million, and provided guidance that the business would be net debt free by the end of the financial year.2

We have now reached a net cash position that we believe will continue to strengthen from here.

“Our order book has continued a similar yearly growth trajectory to the past three years and indicates the potential for further strong sales growth into FY25.“

Ahead of our formal audit, we are reiterating our NPAT guidance to be in the range of $31 million - $33million.

“We have ended the year in a strong position, and we are intending to provide guidance for FY25 in our August results.”

All numbers above are unaudited continuing operations and will be confirmed when Austin reports its FY24 results on 27 August 2024.

-ENDS

i hold ANG

well outside my top-up range and the market will probably like this as well
 
divs4ever said:
now i wouldn't call myself a 'fan' of ANG more like a long-suffering holder my average SP is 27.4 cents

after buying in February 2014 ( @ $2.80 ) May 2014 ( @ $ 1.49 ) . March 2021 ( @ 15 cents ) and May 2021 ( @ 12.5 cents )

now this isn't all ANG's fault Vale building crappy tailings dams was a contributor and Brazil is taking it's sweet time to get back into serious mining output ( partly hindered by the virus response )

it would be nice to see ANG get to 27.5 cents a share this year ( without resorting to a share consolidation ) , but will not be holding my breath .

take a lot of care the mining investment cycle is way out of the usual pattern , and mining operators MIGHT spend their reserve cash on 'green-energy initiatives ' ( like electric trucks or hydrogen powered ones , or just upgrading power plants )

DYOR
Click to expand...
Austin Full Year 2024 Results

Strong operating cashflow, revenue growth recorded across all regions FY24

Key Metrics and Highlights1
 Group revenue of $313.2 million, up 21%, within guidance2 (FY23: $258.3 million)
 Underlying EBITDA of $46.6 million (adjusted for an FX gain of $1.1 million), up 48.9%(FY23: $31.3 million included an FX loss adjustment of $2.8 million)
 Statutory EBITDA of $47.7 million, up 135.0% (FY23: $20.3 million)
 Underlying EBITDA margins increased to 14.9% (FY23: 12.1%)
 Statutory EBITDA margins increased to 15.2% (FY23: 7.9%)
 Underlying NPAT of $31.0 million, up 71.3% (FY23: $18.1 million)
 Statutory NPAT of $29.7 million, up 318.3% (FY23: $7.1 million)
 Earnings per share 5.1c up 315% from 1.22c
 Operating cashflow increased to $36.6 million, up 131.6% (FY23: $15.8 million3)
 Net cash of $9.6 million (FY23: net debt of $14.1 million)
 Order book as at 30 June 2024 up 30% year-on-year to $187 million (FY23: $144 million)
 Revenue improvements recorded across all operating regions.
 Tray and bucket sales increased across all of Austin’s business units, accounting for 71.3% of total sales
 Full year fully franked dividend of 1.2 cents per share
 Full year 2025 guidance:eek: FY25 revenue of ~$350 million (FY24: $313.2 million)
o Underlying FY25 EBIT of ~$50 million (FY24: $38.6 million)

Austin Engineering Limited (ASX: ANG, ‘Austin’ or ‘the Company’) is pleased to announce its results for the Financial Year 2024 (FY24).
Austin CEO and Managing Director, David Singleton, said:“The results reflect a doubling down on our Austin 2.0 operational strategy, which has led to increases in revenue, forward order book, and a much stronger cashflow position at the end of the year.
Our improved financial performance has been driven by a series of initiatives designed to enhance operating efficiencies and lower costs across our business units, which has led to a continued growth in margins.“
Customer focus has been a business priority for Austin in FY24.
We’ve invested in increasing the size of our sales and product support function and added a central marketing capability.
This has helped us to end the financial year with a 30% year-on-year increase in our order book, which we expect will drive further revenue growth as we move into the new financial year.1
All FY24 numbers referenced throughout this ASX announcement are on a statutory continuing operations basis, except where stated otherwise.
Comparisons are based on the prior corresponding period (pcp) and continuing operations.2
Refer to ASX Announcement dated 27 February 2024: FY2024
Half Year Results Announcement.3 FY23 operating cashflow is for the full Group including discontinued operations.

“Our order book has been growing on average 44% per annum since we implemented Austin 2.0 in 2021.
This is due to a combination of Austin building its product range and increasing the size and manufacturing capacity of our facilities across all business units.
“The cost benefits of our AustBuy bulk procurement program, which leverages our scale in this critical area of cost, has positively impacted our FY24 results, and is a development that will grow in the new financial year as it increases its geographic impact and brings its purchasing power to more areas of our business.“
Collectively, these initiatives have seen EBITDA margins continue to improve, ending the year at a statutory 15.2% statutory 7.9%, in FY23.“We are pleased to report strong operating cashflow from continuing operations of $36.6 million, which is a 131.6% improvement on the previous year (FY23: $15.8 million4).
We expect this improvement in cash conversion to be a feature of the business in the future.
“Behind our FY24 performance has also been the strengthening of our management teams in all of our regions as we seek to embed the improving operating environment and ensure we are set up for the opportunities ahead.“Our bucket segment continues to develop as we previously predicted.
Bucket product and services revenues are at multi-year highs for Austin, with a 43% year-on-year increase recorded in Australia,where the initial emphasis has been.
This has driven an overall 13% improvement across the Group.
The development of the mining bucket segment continues to represent a growth area in Australia but increasingly in the Americas as well.
“Following investment in our operations and our senior leadership, we are making good progress towards a fully integrated global business that seeks to leverage our comparative scale.
As a result, we have invested important resources on the IT systems necessary to enable this, an approach that will continue into the new year.”

Financial Results
Total FY24 Group revenue increased 21% year-on-year to $313.2 million (FY23: $258.3 million) from continued operational improvements under the Austin 2.0 strategy.
Revenue was within Austin’s guidance range of $310 million - $330 million.5Group underlying EBITDA grew 48.9% to $46.6 million, from $31.3 million in 2023 after adjusting for a $1.1million FX gain in the year (FY23 was adjusted for an FX loss).6 Actions taken to reduce procurement costs and improvements in manufacturing efficiencies, whilst controlling overhead costs, have seen further improvement in EBITDA margins.

Underlying net profit after tax (NPAT) rose to $31.0 million from $18.1 million in FY237, falling within Austin’s guidance range.8

The statutory result of $29.7 million was adversely impacted by a $2.4 million tax expense charge driven by repatriation of funds from Indonesia to repay legacy intercompany loans.4
FY23 operating cashflow is for the full Group including discontinued operations.5 Refer to ASX Announcement dated 27 February 2024:

FY2024 Half Year Results Announcement.6

FY23 underlying EBITDA was $31.3 million.
Unadjusted EBITDA was $20.3 million.7
FY23 underlying NPAT was $18.1 million.
Unadjusted NPAT was $7.1 million.
8 Refer to ASX Announcement dated 27 February 2024:

Austin generated a 131.6% increase in cash conversion with continuing operational cash inflow of $36.6million (FY23 $15.8 million).
This was primarily driven by improved profitability and effective working capital management.
are working to unlock the lease receivable cash from a contract in Chile which reduced operating cash flow by $9.2 million to further improve cash conversion in the future.
Customer deposits continue to broadly track WIP increases as the business grows, reducing the need to fund this area of growth.

Austin’s order book at the end of the period was up 30% to $187 million and provides a good basis for the business as we move into the new financial year.

Regional Analysis

North AmericaThe USA business achieved another strong year of revenue growth which is a product of its reputation and long history in providing fully customised and high performance truck trays into diverse commodity markets across the USA and Canada. North America now has approximately 1670 trays in service hauling circa 28 million tons of ore per day.
This high installed base creates a strong foundation for future recurring revenue as bodies need to be replaced periodically.
Revenue in the year grew by 27% y-o-y to a multi-year high of $95.5 million and the order book grew by an impressive 78% indicating another strong year ahead.
Despite the strong growth the business maintained its target margin of 18%, moderated slightly from the previous year as the disruption of new manufacturing capacity and supply chains were brought online.
South America
The Chile business has continued its strong operational and financial improvement seen over the last three years, recording a revenue increase of 26% primarily through further growth of rebuild and maintenance sales, which were up 63% in FY24.
Austin Chile achieved an overall order book growth of 24%.
Importantly, full production of truck trays for a major OEM commenced during the year and is now quickly ramping up and expected to drive further significant revenue growth from both Chile and other locations in the region.
Management focus on improving efficiency and throughput levels has been very effective and driven a strong increase in margins to 27%.
Raw material inventory reduction in Chile of 35% was achieved as part of the AustBuy process, partly offset by an increase in WIP as the business grew.
This aided cash conversion, although it remained low due to the nature of the truck tray leasing activity, however the stronger business means that receivable financing is now being pursued to improve cash generation.
Asia Pacific
The APAC unit increased revenue by 17% primarily because of increased truck tray sales from Batam,and sales of bucket and bucket rebuilds following the re-tooling of the Perth facility.
The Batam facility grew revenue significantly during the year and demonstrated the ability to double previous build rates per month following an upgrade and reorganisation of the facility and its processes in the early part of the year.

The business delivered into a broad range of commodities and diverse markets including Australia,Indonesia, India, Europe, and Africa.
The bucket product and services business grew by 43% and now accounts for 38% of APAC’s total revenue.
This was partly offset by lower sales of underground equipment because of a cyclical change ata major customer, but this may start to recover in the new year.4
 

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