Essa shares jump on strong profit upgrade

Shares in Belmont-based sampling equipment manufacturer Essa Australia Ltd were up nearly 20 per cent today, after the company announced an expected 65 per cent rise in net profit after tax from the previous year.

In an announcement to the Australian Securities Exchange, Essa foreshadowed an expected net profit after tax of $3 million for the 2006-2007 financial year, up from the $1.8 million earned in 2005-2006.

Essa was trading at 95 cents at 1:40 WST.

The full text of a company announcement is pasted below

The Directors of Essa Australia Limited ("Essa" or the "Company") are pleased to announce that the Company expects to achieve record results for the year ending 30 June 2007 ("FY07").

Revenues in FY07 are expected to exceed $27 million, representing an increase of almost 50% over reported revenues for the previous year ended 30 June 2006 of $18.078 million.

Net profit after tax is expected to exceed $3 million for FY07 (earnings per share 6.82 cents). This forecast represents a 65% improvement in net profit after tax from the previous year of $1.812 million (earnings per share 4.12 cents).

Targeted expansion in key growth areas as well as favourable conditions in world resources markets are expected to continue to contribute to Essa's strong growth in the foreseeable future.