Runge

Leading mining technology services company, Runge Limited (Runge), today announced its results for the 12 months ended 30 June 2010 (FY10), delivering a net profit after tax of $2.3 million in line with the most recent guidance issued by the Company.

Overview
Runge’s FY10 results reflected the difficult market conditions, including:

• Revenue of $79.0 million (FY09: $83.0 million; 2H10: $41.4 million; 1H10: $37.6 million)
• EBITA of $5.8 million (FY09: $12.7 million; 2H10: $3.0 million; 1H10: $2.8 million)
• Net profit after tax of $2.3 million (FY09: $7.9 million)
• Earnings per share of 1.8 cents (FY09: 6.4 cents)
• Software Maintenance revenue maintains steady growth (up 10% on FY09)

The operating environment in FY10 was difficult due to the GFC and the uncertainty caused by the proposed Resources Super Profits Tax in Australia.  This led to a weakening in demand for major feasibility studies and large software sales, particularly in Australia.

Runge’s Managing Director, Tony Kinnane, commented “Runge delivered a strong result from offshore businesses, but was negatively impacted from domestic operations.  Unfortunately we were slow to adapt. While we continued to invest in our people, we suffered through lower utilisation.  This was addressed in the second half by greater mobility of staff, some attrition and focusing on demand outside of Australia.”

Reflecting the Company’s performance in FY10, the Directors have decided not to pay a final dividend for FY10.

As regards to the future, Mr Kinnane said “We have continued to invest in our people and our internal business systems have been substantially upgraded over the last 18 months.  This will give us greater visibility over our global operations.  New offices have been opened in Mongolia and Russia in line with our geographic growth strategy.”

1H10 Results Presentation
FY10 Results Presentation