Global engineering firm Austin Engineering has shared positive news with a forecasted 18 per cent improvement in its first-half results for the financial year ending 30 June 2024 (1H FY24).
The ASX-listed company said it now expects a first-half revenue in the range of $138-$144 million, surpassing the original guidance of $120 million to $140 million.
Additionally, the anticipated first-half underlying net profit after tax (NPAT) is projected to be in the range of $12 million to $14 million, reflecting an 18 per cent upgrade to the range mid-points compared to the initial guidance of $10 million to $12 million.
Austin said this upgraded guidance signifies a substantial increase, approximately 140 per cent, in first-half NPAT compared to the prior corresponding period (H1 FY23 NPAT of $5.4 million).
The improved financial outlook is attributed to escalating revenue and sustained enhancements in operational effectiveness across the group.
These positive developments align with the Austin 2.0 strategy implemented in 2021, which has been pivotal in driving the company’s performance.
The strategy not only contributed to the enhanced first-half results but is expected to continue delivering increased average operating margins in the coming periods.
Austin’s CEO and Managing Director David Singleton expressed satisfaction, stating that the operational impacts of the Austin 2.0 strategy are ongoing, contributing to their bottom line.
“This continues our journey to the target margins and higher revenue base we believe are possible at Austin. As a result, we expect the revenue and margin growth momentum to continue into the second half of the year,” the CEO noted.
As Austin Engineering enters the second half of the financial year, the company said it is bolstered by improving group margins.
Moreover, a new record level of the order book has been achieved, propelled by robust order intake in Australia.
The commitment to a significant three-year contract extension in the USA further solidifies Austin’s position for continued growth and success.
