Scrap metal recycler CMA Corporation Ltd posted a net profit after tax of $2.8 million for the half year to December 31, up from a net profit of 270,000 during the previous corresponding period.
Scrap metal recycler CMA Corporation Ltd posted a net profit after tax of $2.8 million for the half year to December 31, up from a net profit of 270,000 during the previous corresponding period.
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In the six months to 31 December 2006, CMA posted an after tax net profit of $2.88 million on revenue of $104.0 million. These results compare with an after tax net profit of $0.27 million and revenue of $37.3 million for the previous corresponding period.
Group EBITDA for the first half of FY07 was $8.2 million, a substantial improvement on EBITDA of $2.05 million in the first half of FY06.
Basic earnings per share were 2 cents, up from 0.2 cents per share in the previous corresponding period.
CMA Managing Director Peter Hatfull said the first half result represented a significant rebound after a disappointing FY06.
"We are very pleased with the strong increase in revenue and the rebound in profitability," said Mr Hatfull.
"These results reflect solid growth across the Group and a particularly good performance from our metal trading division.
"We are currently enjoying buoyant conditions in the metal trading market and we expect the strong demand for metal from our domestic and overseas customers to continue."
"Trading conditions remain variable for our contracting division and our strategy moving forward is to focus on projects that support our metal trading business."
Mr Hatfull said remediation was becoming an increasingly important business activity for CMA and that he expected contract work in this area to add real value to the Group in the second half.
During the period CMA announced the expansion of its metal processing and contracting capability through the acquisition of the T & T Metal & Asbestos Services Queensland business and the J&M Metals business in Port Hedland, Western Australia.
The Group took further steps towards building its national infrastructure through the purchase of three baler shears metal processing units providing the ability to significantly enhance the value of metal processed at its collection yards.
Mr Hatfull said the recent purchases have enabled the Group to establish a strong platform for growth.
This week, CMA announced that it had entered into a conditional Share Sale Agreement to acquire Southern Rocycling, the Victorian-based national scrap metal group.
CMA has commenced due diligence on the acquisition, which is also subject to shareholder approval and funding arrangements.
"We have had a good first half and we are now seeing strong commercial gains from our investment in infrastructure and development of a national footprint of operations through FY06," said Mr Hatfull.
"We expect overall trading conditions to remain strong through to the end of FY07 and look forward to continued growth through FY08, with the added opportunity to grow further with Southern Rocycling."