OTOC posts strong profits, sails against the economic headwind

Despite doom and gloom forecasts throughout the market, OTOC Australia has posted a booming half year report.

Operating activity profits for the first half-year period of more than $4.83 million represented a 148% increase on the previous corresponding result of $1.95 million.

Impressively, the total comprehensive income of $731,000 in 2012 has leapt an attention-grabbing 264 per cent to $2.7 million.

Despite mining industry slowdown across the board, OTEC achieved operating revenue of $73.8 million, up 45 per cent on the 2012 figure of $50.8 million.

OTEC attributed the earnings to strong growth of their government contracting, communications and facilities divisions.

Net assets are up to $24.6 million, from $22 million last June, putting it in a good position for growth strategy with $9.1 million in cash and finance facility for $8.2 million.

New CEO Simon Thomas, formerly a senior executive of BHP, stepped in to the position at the end of the half, and recently commented on the results.

“Despite difficult trading conditions in the mining services sector, OTOC has managed to deliver strong revenue from its traditional North-West resources market,” he said.

OTOC expects the appointment of Simon Thomas to enhance relationships with major resource project owners in Western Australia.

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