Mining contractor Mader Group (ASX: MAD) (Mader) has provided its first Annual Report since the Company’s ASX debut in October 2019, showing FY2019 revenue growth of 46% to $228.6 million.
The Company’s consolidated net profit after tax (NPAT) improved to $14.9 million from $11.4 million in FY2018.
“During the year, Mader focused on growing its business model in new regions. We have expanded into new markets and are now servicing about 200 customers in 15 regions across eight countries,” said Mader Group Chief Executive Patrick Conway.
“We’ve established a leading position in the heavy mobile equipment maintenance services sector across multiple markets for these services,” said Mr Conway.
Mader’s business model is to provide skilled tradespeople on flexible terms to support and improve the mobile equipment maintenance programs of mining companies.
The growth in revenue and profit of Mader is driven by:
- Increased demand in regions where Mader already operates (both existing and new customers). Mader believes there remains significant revenue growth potential in all regions in which Mader currently operates;
- Expansion to new addressable markets where usage of heavy mobile equipment is significant; and
- Addition of new ancillary services which are complementary and value-add services to the core capabilities of Mader.
Mader Group is Australia’s largest independent maintenance labour service provider for heavy mobile equipment and was named 2019 Mining Contractor of the Year by Mining Monthly.