ALS shares lift on positive FY25 outlook
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More news: ALS shares lifted in morning trade as traders looked to the laboratory testing company's positive outlook for FY25, after it posted a sharp drop in profit for the 2024 fiscal year.
Shares were up 5.2% to $14.51 by 11:35am AEST. Over the last 12 months its share price has surged 17.41%.
Writedowns weigh on ALS full-year profit
The news: Laboratory testing giant ALS has posted a sharp drop in full-year profit on the back of impairments and restructuring costs related to its Europe-based contract research business Nuvisan.
The numbers: Statutory net profit for the 12 months to end of March slid 96% to $12.9 million. Excluding the one-off items, underlying profit was down 1.3% to $316.5 million, within its stated guidance range.
Revenue rose 6.8% to $2.59 billion and the company declared a final dividend of 19.6 cents a share.
The context: Chair Bruce Phillips said the global business had put in a solid performance despite the continued challenging market environment and increase in growth investments.
ALS executed eight acquisitions during the year, which are expected to contribute an additional $152 million revenue on a full year basis. This included the $225 million of two environmental testing businesses in the US and Europe in March. ALS also acquired the balance 49% stake in Nuvisan with a plan to restructure operations of the troubled company over two years.
The group said the medium to long-term outlook for both its life sciences and commodities businesses remains positive and it is targeting mid-single digit organic revenue growth for FY25.
The source: ASX announcement
