MDM Engineering’s revenue soars 428%

MDM Engineering, an AIM-listed minerals process-engineering and project-management company with a strong focus on African mining, saw revenue rocket 428% to $89m for the year to Marchorizontal coal mill in power planth 31.

The SA-based group yesterday said despite a difficult global trading environment, demand for its services remained robust, having won additional orders both in and outside SA since April.

The company operates in small, medium and large-scale minerals projects in about 32 countries, of which about 20 are in Africa.

Second-half pretax profit was 36,4% up on the first half, while the group cash position remained strong at $29m from $18m last year, with nominal gearing. "We are very pleased to announce a strong set of financials to the market, which has been brought about by creating a strong business platform over the past two years," CEO Martin Smith said yesterday.

He said the group had a strong pipeline of work at feasibility and project levels, and would look to grow the business organically and by acquisitions.

The group also said it was committed to pay a minimum 50% of after-tax profit as a dividend to shareholders.

Management had continued to upgrade and streamline systems, procedures, and internal administration controls and project controls, nonexecutive chairman, Bill Nairn, said yesterday.

He said it allowed the group to identify opportunities to expand in Africa, including in Ghana, Tanzania and the Democratic Republic of Congo, as well as countries outside the continent, such as Argentina.

"Our business efforts have borne fruit in that orders have been placed in West, Central and Eastern Africa," Mr Nairn said.

He said MDM Engineering had further strengthened its African footprint, by registering companies in countries where it worked.

He also said notwithstanding the "very difficult global financial environment", the group’s "satisfactory trading position" would continue into the next financial year.