Emerson Stewart Group Limited (ASX: ESW) posted a strong first half result, with an interim net profit after tax of $1.47 million for the period ended 31 December 2008, a 124.5% increase on the previous corresponding period. NPAT, Revenue and EBIT results were only marginally below guidance provided at the company's AGM on 28 November 2008.
The results do not include a provision for the recoverability of receivables due by Windimurra Vanadium Limited, which entered into administration and receivership on 18 February 2009, although it has been noted in the Company's accounts as a post balance sheet contingency.
Managing Director | CEO Dario Amara said, "This net profit result is pleasing, particularly given the increasingly difficult conditions in our markets," said Mr Amara.
"The diversity of our business and earnings base has been a benefit to the group during these challenging times and will continue to be a major advantage in the second half of the year.
"In particular, our Resources and Infrastructure businesses made very positive contributions."
In the six month period, Emerson Stewart secured a number of contracts with new and existing clients including BHP Billiton, IMX Resources, Peet Limited and Straits Asia Resources.
Mr Amara said while conditions in the Emerson Stewart's markets were challenging, the company continued to see a number of opportunities, particularly in the infrastructure sector.
"The next six months may be challenging for the Company in common with other businesses in the current economic climate, however there are still opportunities in the pipeline.
"In addition, our forward order book remains in good shape with a revenue tail until 2018," he said.
Mr Amara said that Emerson Stewart would continue with its strategy of expanding the business through a mixture of organic growth and acquisitions.
"The current economic climate has given rise to a significant increase in the number of acquisition opportunities. However, given the volatile market conditions we are taking a cautious approach to acquisitions," he said.
"We continue to review all opportunities that have the potential to add value to the group and will act quickly when the appropriate opportunity arises."