27/01/2009 - 14:06

Ammtec up on lower profit guidance

27/01/2009 - 14:06

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Shares in Ammtec have risen despite the company again lowering its profit guidance for the 2009 financial year as the mining downturn starts to flow through to the metallurgical testing company.

Ammtec up on lower profit guidance

Shares in Ammtec have risen despite the company again lowering its profit guidance for the 2009 financial year as the mining downturn starts to flow through to the metallurgical testing company.

The company announced today that it expects a net profit after tax of $8.7 million, down from the previous forecast of $10 million.

Earnings per share will be 34 cents, down from 40c per share flagged earlier.

Shares in Ammtec, which had previously been in a trading halt, jumped 14 per cent to an intraday high of $1.50 before cooling to close at $1.35, a gain of four cents.

Ammtec said it had been affected by the economic climate and poor commodity prices with a number of clients deferring major projects.

The Marc business, which Ammtec acquired early last year, reported that a $1.5 million confirmed dust collection job had been postponed and negotiations on several other projects had been suspended.

The company also released its unaudited interim results for the six months to the end of December 2008, with revenue at $29.8 million, up from $16 million from the previous corresponding period.

Net profit after tax was $4.1 million, which Ammtec said was on par from the previous corresponding period after taking into account the Marc business acquisition.

However the result does not provide for any write down on investments in Purity Systems Inc or Marc.

Ammtec said it will pay a full franked interim dividend of six cents per share in April.

The final half year report is due for release on February 20.

 

 


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