QMASTOR expects FY11 ebitda of $2.8m

QMASTOR expects FY11 ebitda of $2.8m

Industrial software developer QMASTOR (ASX:QML) expects to report a nearly 600% increase in FY11 ebitda, on record revenue from the year.

The company is forecasting ebitda of $2.8 million for the financial year just passed, which would be a 592% improvement on FY10.

Revenue has been estimated at $12.8 million – a growth rate of 72% - with contributions from international markets growing from 18% to 37% of total revenue.

Managing director Trent Bagnall said the expected result vindicates the company's international growth strategy, adopted in 2009.

He said the company opened a South African office in 2008, a North American office a year later, and that its South American unit, established in 2010, should contribute revenues in 1H12.

The $5 million acquisition of Canadian mining software developer Algoqys, completed in December, also contributed to the expected growth.

Algosys exceeded profit expectations for its seven months of contributions by around 30%.

QMASTOR maintained its target of $20 million revenue in FY12, on expectations that a full-year's contribution from Algosys and the South American office will boost its bottom line.

The company in June received a $0.23 per share takeover offer from US-based Triple Point Technology that effectively values the company at $19.3 million.

On Tuesday, QMASTOR said it would advise shareholders on its recommendation over the offer shortly, but noted that shareholders holding over 10% of the company have already rejected the offer. The takeover offer would require a 90% acceptance to go forward.

QMASTOR separately announced it had won software licensing and maintenance contracts with Canadian export coal terminal operator Westshore Terminals, and another with Vale for a coal project in Mozambique.

QML shares grew 11.11% in Tuesday's trading to $0.250.

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Tags softwareexpansionQMASTORAlgosysGuidanceASX:QMLTrent Bagnall

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