ANG have just reported very strongly boosted a little by some revenue that didn't quite make last half. Full year outlook is very strong though.

Here are the highlights of the half.

• Revenue up 26% to $143.6 million
• EBITDA up 70% to $20.8 million
• NPAT up 2.8 times to $15 million
• Operating cashflow $6.9 million
• Net debt of $11.4 million, on track to be debt free in FY24
• Order book up 16% to a multi-year high of $184 million
• Return on Equity increased to 27%
• Interim dividend reinstated of 0.4 cents per share, fully franked

Full year outlook is just as strong.

• • FY24 revenue of $310 million - $330 million, up ~24% from FY23
• • FY24 NPAT of $31 million - $33 million, up ~75% from FY23
• • Company on track to be debt free in FY24

At 42c, at time of writing, the forward P/E is 7.7.

Order book is very strong at 27% higher than end of H2 23.

I didn't like the release stating 'recurring revenue' without stating what this meant. My interpretation is that this is bollocks. I think they have recurring customers, but that's it.

As with each of the mining service companies you need to judge how long the cycle will last. All of them still have very positive outlooks.

HELD.

ANG has upgraded guidance for the half year.

1H FY24Revenue of$138-$144million(versus original guidance of $120-140 million)

1H FY24 Underlying NPAT of$12-$14 million (versus original guidance of$10-$12 million)

Austin enters the second half of the financial year with improving group margins and with a new record level of order book following strong order in take in Australia and the commitment to a major 3 year contract extension in the USA.

They reported 'normalised NPAT' for the full year last year of $18.1M. Taking the mid-point of the 1H result and doubling it for full year gives them a forward P/E of about 7.

Disappointing announcement from ANG today. Normalised Net profit after tax for FY23 is now expected to be in the range $17-$19 million down from expected 24m. Reason is delayed orders (now received) for truck trays in Perth from one major customer. Expected revenue now pushed to fy24.

It highlights their dependency on a small set of customers.

Very strong update from the company today.

• In Dec and Jan received orders for approximately 40 per cent (approximately 500 expected in FY23) of orders received in a normal full year
• Production of the trays is either already underway or planned to commence shortly, with most of the deliveries scheduled through the 2023 calendar year but with significant revenue to be booked in the second half of FY 2023
• H2 2023 revenue (circa $250 million) for the Group has now been met by contracted or confirmed orders, with further loading expected during January and March 2023. The higher revenue outlook is stronger than at the same position a year ago.
• 120 or the 210 were for their new ultra-lightweight High Performance Tray (HPT). Already receiving queries to modify design for other markets suggesting it will become a core, worldwide product for them
• Austin continues to see a strong mining equipment market for at least the next 18 months. The order pipeline (for non-contracted, expected requirements) is more than double where it was in December 2021

Management have been confident for a year or so now. They committed capital to increase manufacturing capacity and they'll now reap the benefits by being able to deliver on the strong growth in orders.

Strong full year result from ANG. NPAT doubled.

Forecast for next year from their results announcement

• FY23outlooklooks strong based on improving business efficiency,broad market recovery, especially in the Americas and new product launches aimed at improving competitiveness.
• Full year NPAT is expected to be up 17% to circa $24 million (excluding Mainetec contribution. Update post completion)
• The Company’s orderbook stood at $135 million on 1 July 2022, which was a $50 million rise from the same time last year indicating the potential for significant revenue growth.
• USA, Indonesia, Chile and Mainetec have strong order books. Australia (Perth) still exhibiting some operational issues, whichare under review.

To put this in context.

• With the announced NPAT the business is on a P/E of 9.6 - which is cheap
• NPAT expected to grow 17% before the contribution of recent acquisition - which is to be EPS accretive
• Order book of $135M. Their total sales for FY22 was $200M. So they could overshoot this.

Austin to acquire mining equipment company Mainetec

Mainetec is expected to have revenue of more than $40 million (on an annualised basis) for the 2023 financial year. In perspective - ANG revenue is currently $200M - so another 25%

Expected to be >20% EPS accretive to FY23 on a full year basis; expected significant operating and cost synergies.

Acquisition to be funded through cash plus new and existing debt facilities; prudent gearing maintained. Initial amount is only $19M. So it sounds like a great deal.

ang-to-acquire-mining-equipment-company-for-19-6-million-2751312 (1).pdf

Another positive update from ANG.

Back in Feb ANG expected a full year EBITDA of $30M. They have upgraded this to $32M (7%) on improved margins.

order book on 1 July 2022 was approximately $49 million higher than at 30 June 2021 (FY21). The order book is expected to driver higher first half revenue in FY23 compared to FY22.

ANG is a mining services company that provide truck bodies and digger buckets, etc. Like other mining services they are reporting strong profit growth. See Lycopodium (LYL).

ANG are a worldwide business with manufacturing in WA and Indonesia.

ANG's NPAT is jumping from $3M to $18M for this full year. The forward P/E is 8.2 with their order book at somewhere around $120M when full year sales are about $200M. So they have on order 60% of next years revenue.

So I reckon its cheap on a P/E of 8 and any modest growth in NPAT and P/E will provide a good return. I've added a valuation.