While its first half revenue dipped 7% to A$80 million, the company said that was a result of reducing unprofitable activities, which had the impact of boosting earnings and delivering a 202% improvement in net profitability after tax to $6.7 million.

 

As a result of efficiency gains and improving margins, the firm expects to its FY22 EBITDA to be 136% higher at around $30 million and NPAT to rise almost 450% to more than $18 million.

 

Austin said its order book was up by more than a third, its North American and Chile businesses were switching from loss-making to profitability, it had successfully closed its Peruvian business and sold property in Colombia, and the outlook for the Asia Pacific was brimming with opportunity.

 

Its FY23 outlook "looks strong" based on improving business efficiency, a broad market recovery, especially in the Americas, and new product launches aimed at improving competitiveness.

 

Managing director David Singleton said the team had delivered on its commitment of a significant turnaround in Austin's operating margins and competitiveness.

 

"We see this performance improvement as the new normal for Austin because it is based on clear structural changes that should ensure the improved margins are sustainable and improve further," he said.

 

He noted that the improvements in underlying profitability were being delivered at a time when its four core markets were showing robust sales conditions. 

 

The company completed a strategic review at the start of FY22, and its Austin 2.0 plan has stripped out annual overheads of $11 million, while investments in product development have started to generate encouraging sales, particularly its enhanced logistics truck body design, which has been sold in "material numbers to three customers" already.

 

Truck bodies and buckets make up almost 70% of its business.

 

Net debt has been increased by $9 million to $20 million, with the cash being deployed to support higher activity in the current half and buying extra steel to protect from supply chain risks.

 

It has declared a 2c interim dividend.

 

Net debt was about $20 million at December 31.

 

Despite the optimistic outlook, Austin shares were off 7% this morning at 28c, valuing the company at $175 million.

 

The stock has traded at 11-21c over the past year.