Orbital bounces back into the black

Balcatta-based fuel technology systems group Orbital Corporation has built on a solid first half and delivered a full-year net profit, rebounding from a loss of more than $3 million in the previous 12 months.

Orbital today announced it had lodged a net profit of $364,000 for the 2013 financial year, up from a $3.053 million full year loss.

Revenue was up to $26.7 million, from $22.3 million in FY2012, Orbital said.

The improved result was primarily due to increased fuel system sales and tighter cost control, the company said.

Excluding impairments and restructuring costs, Orbital said its underlying profit was $1.3 million.

“Orbital continues to deliver on its strategy to move into sales of high value systems, while maintaining our strong engineering core,” Orbital chief Terry Stinson said.

“Our new systems business increased revenues and cost control helped to compensate for a drop in consulting services revenues and for the depressed LPG market in Australia.”

Mr Stinson said the company’s results were particular boosted by its newest division, which manufactures Small Unmanned Aerial Systems (SUAS) for the United States military.

The division produced revenue of $23.4 million for FY2013, for a net profit of $2.1 million.

“There is more to come; one area that Orbital will continue to explore is natural gas and liquid natural gas systems development,” Mr Stinson said.

At close of trade today, Orbital shares were down 7 per cent, at 20 cents.