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WestStar eclipses order book milestone - The Pick Online Magazine

Written by Staff Writer | Dec 4, 2018 11:43:07 AM

Diversified construction company WestStar Industrial (ASX:WSI) is building traction, boasting an order book of approximately $13m, exceeding the group revenue posted for the previous financial year in its entirety.

Unfolding order book gains are originating from the company’s subsidiaries SIMPEC and Precast Australia, which have posted a string of contract wins with major organisations.

SIMPEC – which is a multidisciplinary engineering outfit capable of end-to-end services and maintenance, largely for the resources industries – has built an order book of $9.5 million.

Notably, SIMPEC has recorded further contract wins with Iluka Resources and MSP Engineering at the Talison Lithium mine.

It has also tendered for a massive $150m in upcoming work, as more large-scale resources projects continue to be announced in Western Australia.

Precast Australia has also grown its order book, reaching over $2m from the financial year to date.

The business operates as a concrete fabricator with the capacity to deliver works from fabrication to assembly.

Precast has been awarded scope extensions for work on the high-profile projects, such as the Forrestfield-Airport Link in Western Australia.

The group anticipates further cost saving and efficiency dividends as the pair of businesses plan to work closer on joint tenders.

WestStar is also picking up tailwinds from its minority holdings in resources minnow Cohiba Minerals, which holds a project just 2km from BHP’s recent copper discovery in central South Australia.

Commenting on the minority stake, WestStar director Bert Mondello said:

Although WestStar’s focus remains firmly on our construction, engineering and mining services businesses, it is satisfying that our board transacted astutely with these mining exploration assets.”