Resources sector equipment and parts provider ADG Global Supply has reported a 25 per cent increase in interim operating revenue which underpinned a $339,000 profit, bouncing back from a $40,000 loss in the previous corresponding period.
ADG said it achieved the result through $426,000 in fixed and variable cost reductions, including the closure of non-core warehouses and the consolidation of freight providers.
For the six months ended December 31, ADG's revenue increased by to 23.1 million, a 25 per cent jump from the same period in 2009.
Since December 31, ADG said it has confirmed $6 million worth of new business, giving management high confidence of delivering on its full year guidance.
ADG managing director John Mancini said the performance was an indication that recent changes in strategy had repositioned the company for sustainable growth.
"The effort of the management team in the last six months to reengineer the business model will enable us to further increase our order book without a significant increase in overheads," Mr Mancini said.
"We now have the people and systems in place to efficiently serve our existing global clients in the resource and energy sectors.
"ADG can easily demonstrate value in global industrial supply and end to end supply chain management to its customers. We are very pleased with this result."
