Atlas Engineered Products Ltd (CVE:AEP) said its third quarter revenue growth surged by 18% from the previous quarter and was up 26% for the nine-months to February.

In a statement, the company said that its third quarter numbers reflected the impact of the costs associated with adding to the management team, infrastructure to support growth and expenses pertaining to its acquisition and expansion programme.

READ: Atlas Engineered Products hires experienced executive Woods as chief financial officer

Gross margins for the quarter stood at 24%.

Adjusted Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to C$83,830 from C$222,722 due to the higher costs associated with the company’s acquisitions.

Atlas Engineered, which had set a 12-month revenue target of C$50mln with a 15% EBITDA margin, said: “On a pro-forma basis, the acquisition targets the company presently has under consideration will enable those targets to be achieved.”

Guy Champagne, President of Atlas, said: “We are very pleased that our Atlas Nanaimo operation has been able to support the significant investments we have made in launching our growth strategy.

"This is a testament to how strong our core business is and provides a very stable foundation for rapid growth.  Next quarter’s will affirm the positive financial impacts of our Clinton and Truebeam operations.”