Like many businesses associated with the state’s resources sector, Brandrill Ltd has been enjoying strong results of late.
Like many businesses associated with the state’s resources sector, Brandrill Ltd has been enjoying strong results of late.
But Brandrill’s performance is more noteworthy due to the fact that administrators, receivers and managers were appointed in June 2004. Since that time, the company has undergone something of a transformation.
Brandrill managing director Ken Perry said for 2005-2006, the company was expecting revenues of approximately $100 million, up from $70 million last year.
The forecast result is a far cry from the consolidated loss of $27.4 million for the period ending June 2004.
“We now have 400 employees, and in June 2005 we relocated to Henderson from Pinjarra, which provided a number of benefits,” Mr Perry told WA Business News.
“We now have 16 fitters in our workshops; we didn’t have any at Pinjarra [in 2004] as we couldn’t recruit them. We have two apprentices and we are headed to having four. We are also pouring money into training for drillers and fitters.”
At Brandrill’s annual general meeting, chairman Vince Pendal said sales had increased from $4 million to $5 million per month in the first half of last financial year, to $7 million to $8 million per month in the six months to June 2005.
Mr Pendal said the opportunities for growth were from the company’s existing projects expanding in iron ore and other commodities, from new projects and from utilising rigs from other drilling companies.
“Our order book now stands at $170 million and we have tenders and quotes outstanding of over $700 million, a significant proportion of which should be converted to contracts,” Mr Pendal said.
In November, 19.9 per cent of Brandrill was acquired by international investment funds Harmony Capital Partners and Stark Investments, with each spending $5.1 million on the acquisition.
Harmony and Stark acquired the shares from another international investment fund, London-based Mizuho International, which rescued Brandrill from administration in 2004.
Last year, Brandrill entered into an agreement with independent drill and blast contractor, BJC Drilling, to hire seven blast hole rigs in the Bowen Basin, Queensland, for a period of three years, with an option to acquire the rigs.
The company also bought three other drill rigs and has ordered two more large rigs for delivery in May and June 2006, which will lift the company’s fleet to 65 rigs.
Last week, Western Australian drilling, blasting and exploration contractor, Ausdrill Ltd, announced that its net profit after tax for the first half-year ended December 31 2005 would be between $8 million and $9 million.
During the past year, Ausdrill’s share price has risen from 60 cents to $1.36 this week with the company announcing 2.25 cents per share dividend paid in October 2005.
At the company’s AGM in November, chairman Terence O’Connor said Ausdrill’s acquisition of African Mining Services Ghana Pty Ltd last March, and Ausdrill Northwest’s expansion with the contract to perform exploration drilling services for BHP Billiton in the Pilbara, would play significantly in the company’s future development.
Mr O’Connor said Ausdrill’s six-year, $150 million KCGM Super Pit contract, to commence in March 2006, underpinned the company’s core drill and blast business.
Ausdrill’s upward trend has been such that it was listed third in order of preference of favourite stocks in Hartleys WA Industrial Snapshots, Riches from Resources for November 2005.
