The company’s revenues increased 43.5% to circa $73 million in fiscal 2017 with robust underlying earnings margins of 35.4%.
Valmec has received strong institutional interest in relation to its capital raising which is priced at $0.25 per share.
The company hasn’t quantified the total amount to be raised, but these details should be released by Wednesday.
The capital raising will assist in strengthening Valmec’s balance sheet, enabling it to capitalise on strong first half revenues, while growing its position in the energy services industry.
Exercise of options indicates management’s confidence in the company
Valmec continues to receive commitments from its listed option holders to exercise the VMXO Options, which have an exercise price of $0.25 per option.
Founding directors, Stephen Zurhaar, Stephen Lazarakis, Vincent Goss and Steve Dropulich have exercised a total of 6.6 million VMXO options which will raise $1.65 million.
Earnings for the first half are expected to be in line with market expectations, with revenues growing and EBITDA margins across all divisions consistent with prior years.
A stronger balance sheet provides the company with an opportunity to increase its order book.