gps online ready for growth after profit turnaroun

GPS Online ready for growth after profit turnaround
09:28, Thursday, 14 September 2006

Sydney - Thursday - Sep 14: (RWE Australian Business News) -
Mining products and services company GPS Online Ltd (ASX code: GPO)
earned a net profit of $9.25 million in the 12 months ended June 30,
compared with a net loss of $1.34 million for the previous year.
Earnings before interest, taxation, depreciation and
amortisation improved from a $718,000 loss to a $2.4 million profit.
Revenue rose 203 per cent to $10.5 million from $3.46 million.
Managing director and chief executive Mr Robin Levison said
recent acquisitions had contributed to the performance and positioned
the company for future growth.
The board reaffirmed its forecast of 440 per cent growth in
operating profit for the 2007 financial year.
"Our business units are largely performing as expected, and it
is most pleasing that Advanced Mining Technologies (AMT) performed above
expectation.
"We are also seeing the initial benefits of integrating the
business with cost synergies contributing to an improved operating
margin result," Mr Levison said.
GPS Online acquired AMT in December 2005 and announced plans in
June 2006 to acquire WADAM Industries, a company that facilitates strong
two-way mining equipment trade with China.
"WADAM gives us a valuable foothold in the Chinese market
through distribution agreements with some of the world's leading
underground mining supply companies," Mr Levision noted.
He said that after a further review of its 2006 result and the
current 2007 forecast, the GPS board had reiterated its year-end 2007
forecast of a 440% increase in operating profit to $12.3 million on
revenues of $78 million corresponding to earnings per share of 2.2c.
ENDS