Ammtec records $7.2m FY10 profit

Perth-based metallurgical testing specialist Ammtec, which has agreed to a conditional takeover by Campbell Brothers, has recorded a $7.2 million after tax profit for the 2010 financial year.

This compares to a $6.9 million profit for the previous corresponding period.

In its annual report to shareholders Ammtec chairman David Macoboy said the company had returned to pre-GFC activity levels in the final quarter of 2010.

"The profit which is in line with forecast guidance given by the Board in December 2009 comprising $4.3 million for the second half compared to $2.9 for the first half," said Mr Macoboy.

He said the result was achieved during the uncertainty surrounding the proposed Resource Super Profits Tax.

"But I am pleased that we move forward into the FY11 with greater certainty that the less onerous Minerals Resource Rent Tax, which will apply to coal and iron ore and the Petroleum Resources Rent Tax applying to the oil and gas sector, will have a lesser impact on Ammtec," said Mr Macoboy.

Mr Macoboy only briefly touched on the Campbell Brothers takeover in his letter to shareholders.

On September 13, Ammtec's board agreed to an increased takeover offer from Campbell Brothers of $3.85 per Ammtec share.