WestStar Industrial grows on mining surge

Diversified Perth engineering and construction firm WestStar Industrial (ASX: WSI) has seen a surge in business on the back of strong activity in the WA mining sector.

The company announced its largest-ever quarterly sales for the final quarter of 2018-19, with $17.8 million in cash receipts.

Its’ SIMPEC division won a $10 million contract during the quarter for the construction of an 800-room camp at FMG’s Eliwana iron ore mine in the Pilbara region – the company’s largest-ever contract.

This brought to $50 million the value of contracts awarded to the company in the full year.

Contract extensions worth $12.5 million were also awarded during the year.

SIMPEC provides turnkey solutions to its customers, specialising in both Structural Mechanical and Piping (SMP), and Electrical and Instrumentation (E&I) works.

The company commented: “The June Quarter has been exceptional for WestStar, both operationally and financially.

“SIMPEC in particular has exceeded expectations with strong delivery on contracts on notable large resources projects.”

Another WestStar subsidiary, PreCast Australia, offers precast concrete supply and installation.

WestStar completed a share placement worth $2.4 million during the quarter with existing shareholders and new professional investors.

Picture: WestStar Industrial

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