Shares in mining technology company Runge (ASX:RUL) grew more than 15% on Monday, after the company forecast an up to 60% profit growth for FY11.
Runge, which provides mining software, technology and consulting services, estimated it grew its profit to between $3.4 million and $3.7 million during the year.
This compares to an FY10 profit of $2.3 million, and was achieved even after expected write-downs of around $1 million before tax, from “internally developed technology assets.”
Revenue is believed to have grown 19% to $94 million, while ebitda is expected to be around $9 million to $9.3 million, from FY10's $5.7 million.
But despite the solid gains, new Runge managing director David Meldrum said the results still “do not reflect the true potential of the company.”
Meldrum said his key mission will be to improve the company's responsiveness to changing client demands, and to add more technology items into the product mix.
When Meldrum was appointed permanent managing director on July 7, he acknowledged that Runge had “performed below the board's and market expectations” since it listed in 2008.
RUL shares grew 15.71% in Monday's trading to $0.405.