Matrix shares slump despite profit

Matrix Composites and Engineering says it is targeting organic growth after booking a record $33.6 million net profit for the year to June 30; an increase of 85 per cent on the previous year.

The profit was driven by company-best revenue of $187 million, up 82 per cent on financial year 2009-10.

Matrix, which supplies specialist equipment to the offshore oil & gas sector, said the revenue increase was on the back of increased capacity at its Malaga plant.

It expects further revenue growth of 20 per cent over FY2012, with a larger contribution from its Henderson facility, which only contributed marginally to revenue after being commissioned in June.

“Matrix believes that our organic growth opportunities provide a superior return at lower levels of risk than growth via acquisition,” the company said in a statement.

“To this end, in April 2011 we embarked on a successful $33.8 million capital raising to provide funding to facilitate this growth.

“The application of these funds will include new product tooling, product development, several new earnings accretive processes and additional working capital required to fund activities in the USA and Brazil.”

Matrix declared a fully franked dividend of 5 cents per share.

The higher profit failed to arrest a slide in Matrix's share price over the past five months, after a spectacular rise during 2009 and early 2010 to a peak of $9.60.

At 11:00AM (WST) Matrix’ stock was down 41 cents to $4.85.