Austin Engineering Limited has obtained all of its expected purchase orders expected following a successful tender process last year, with an additional 25 per cent in additional orders, under a single contract for truck trays to be transported to Western Australia.
The value of the orders received to date is approximately $25 million, the ASX-listed company announced in a press release.
In particular, the first three trays in this order were delivered ex-works 10 days ago and will be shipped to the customer’s location.
The remaining trays are being manufactured or are scheduled for manufacture in Austin’s facilities in Batam, Indonesia and Perth, Western Australia.
David Singleton, Austin CEO and managing director, expressed his delight at receiving more purchase orders than anticipated in accordance with the FY23 tender contract and confirmed that the majority of the revenue will be recorded in FY24.
“Our recently expanded Batam manufacturing centre continues to provide the extra capacity and flexibility we need in our business. With deliveries now scheduled across the world including US, Australia, Europe and India, we are expecting a strong performance for our Batam operations in FY24,” Singleton said.
In May 2023, Austin said that it had obtained 85 per cent of the outstanding purchase orders for this contract and was expecting the final orders, which have since been received.
The whole order book has continued to rise, and by the end of May 2023, Austin’s group order book will be worth $146 million1, up 21 per cent from the previous year and more than double from the previous year.
Furthermore, Austin reiterates the advice it provided on 4 May 2023.
The net debt for the entire fiscal year FY23 is anticipated to be around $16 million, with material procurement having the biggest impact and deposits as a result of the delayed order partially offsetting this.
The situation is anticipated to improve over the coming months as deliveries are made, the company said.
