Advanced Braking Technology achieves 50% growth in first half
Advanced Braking Technology (ASX: ABV) has generated year-on-year revenue growth of 50% in the first half of fiscal 2017. The loss of $390,000 compared favourably with the previous corresponding period’s loss of $910,000, while the group made a nominal operating profit.
The group’s cash flow performance was arguably the best measure as it was close to breakeven compared with $1.4 million in cash outflow in the previous corresponding period. Cost controls were effective in the first half with expenses falling by circa 14%.
Advanced Braking Technology develops innovative braking systems with its main product being the Sealed Integrated Braking System (SIBS), a comprehensively patented Australian invention now used widely in light commercial vehicles in the mining industry.
The first half appears to have been an inflection point for the company as it has continued a positive upward trend in January, having received orders to the value of $1 million driven by strong demand from both domestic and international mining customers.
Management said that stronger domestic demand for its failsafe product range had underpinned the solid first half, and that this has been complemented by robust international orders in January with significant orders received from Mongolia, Canada and Indonesia.
Mongolia’s mining industry is thriving with a number of coal projects in train and the mega Oyu Tolgoi copper gold mine in the South Gobi region being developed by Rio Tinto and partners.
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