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
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
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