Xstrata Zinc deal and garbage truck program progress are highlights
By Rob McKay | February 23, 2011
Advanced Braking Technology (ABT) has recorded its first ever profit results – 10 years after it was formed.
The pleasing result comes after the Western Australian firm went to the market to raise $3 million in investment capital.
ABT, which produces a patented single rotor enclosed wet brake technology, dubbed the Sealed Integrated Braking System (SIBS), recorded a first half net profit after tax of $658,000, compared with a $447,000 loss in the previous first half.
This was bolstered by a $307 million research and development tax rebate.
“Even before these adjustments, the profitable result was very creditable and very positive for the company – and provides a strong foundation for the rest of the 2011 financial year,” ABT Chief Executive Ken Johnsen says.
“The strong increase in revenue, in particular the strong performance of our Australian sales division, has provided the platform for the Company’s first ever profit since it was established nearly 10 years ago.
“That is a great credit to our team and a vindication of the strategy we have been pursuing to continue to grow our sales in the core mining market while at the same time diversifying into mainstream applications.”
The company’s principal focus is the sale of SIBS to the international mining customers, including some of the world’s largest miners such as BHP Billiton, Xstrata and Rio Tinto.
A highlight of the first half was the sale of 96 SIBS brake sets, worth to Xstrata Zinc just under $800,000, together with an improved performance across the entire product range.
“This included increased sales of the concrete agitator or ‘Agi’ brake, including a number which have now been fitted to trucks for carrying mining explosives,” Johnsen says.
“These sales demonstrate the important market need ABT is fulfilling in providing a safer braking solution for heavy rigid trucks.”
“Spare part sales also increased to $1.1 million, while the strongly improved sales revenue figure included $500,000 worth of revenue related to our garbage truck development program.”
“Overall, this has provided us with a very strong sales pipeline moving forward.
“This should provide a solid foundation for the 12 months to 30 June 2011, although we are not yet in a position to forecast our full year result.”
ABT’s garbage truck development program has entered its production validation phase following the award of a $2 million pre-production contract in July 2010.
Production-representative brake sets are currently nearing completion at the company’s Thai manufacturing facility and will be available within a month for the start of the installation process ahead of the fleet test of five trucks in commercial waste collection rounds.