OTOC shares rise on profit guidance

Shares in OTOC have jumped by 20 per cent after the company released a promising earnings guidance and gave a positive insight into future operations.

OTOC said it expected its full-year revenue to be about $113 million, around the same as last year, while full-year EBITDA was predicted to beat last year’s figure of $10.9 million.

The Perth-based infrastructure services company said it had more than $15 million in cash which, along with a strong balance sheet, would help to deliver its current workload and fund acquisitions as part of its strategy to expand surveying, town planning and mapping capabilities.

“This achievement is very pleasing given the reduction in mining capital expenditure we have seen in Western Australia and generally subdued trading conditions in the resources services sector,” OTOC chief executive officer Simon Thomas said.

“These financial results reflect the benefits of our strategy of targeting a more diversified operating and revenue base, resulting in higher quality earnings and greater profit margins.”

OTOC’s shares last traded at 12 cents at 11am.