Ausdrill posts record profit for FY08

Takeover target Ausdrill Ltd has forecast earnings growth in the 2009 financial year of at least 20 per cent after posting a 31 per cent increase in net profit after tax for fiscal 2008.

The company, which is currently being sought after by Macmahon Holdings Ltd, said it will achieve a NPAT of about $35 million, up 31 per cent from the previous year.

Subsequently the directors of the company expect earnings growth for FY09 of at least 20 to 30 per cent.

Over the next two months, Ausdrill will tender on or negotiate extensions to contracts in Australia and Africa representing in excess of $600million in additional revenue. In Africa alone the company said it had identified a total of about $2.9 billion of work up for tender in the next 18 months.

And in a bid to douse the takeover desires by Macmahon, Ausdrill said that since the takeover was launched, the company had announced developments that represent around $225 million in additional revenue.

Ausdrill today continued to recommend that its shareholders reject Macmahon's bid of 1.45 of its shares for each Ausdrill share.

Additionally, Ausdrill continued to describe Macmahon's bid as opportunistic, and that the bidder has so far disclosed acceptances for 0.31 per cent of Ausdrill shares.

The takeover offer is scheduled to close on August 15.