Dynamic set to end FY2022 on a high note following strong growth
Dynamic Group looks set to close out the 2022 financial year in style with contracts awarded in the March quarter expected to deliver strong performance in the current quarter.
These include Rio Tinto selecting subsidiary Dynamic Drill & Blast as a select supplier panel member, the award of a Tier 1 iron ore construction drill and blast project in the Pilbara that begins this quarter, and recently acquired subsidiary Orlando Drilling picking up multiple exploration drilling projects.
Its strong order book has required Dynamic Group Holding (ASX:DDB) to acquire two new blast hole drill rigs and a new reverse circulation drill rig that will be delivered and deployed respectively this quarter.
Along with long-term drill and blast operations at AngloGold Ashtanti Limited’s (ASX:AGG) Golden Delicious project in WA’s Goldfields region and Allkem Limited’s (ASX: AKE) Mt Cattlin Lithium Spodumene project as well as scope increases on several projects, overall utilisation of the company’s equipment is looking to be very high into Q4 FY2022.
During the March quarter, the company reported cash inflows from operating activities of $18.6m, just under three times its cash inflows during the same period the previous year.
Revenues for the financial year to the end of March hit $53.2m, about 212% higher from the same period in FY2021, which further highlights the incredible growth that Dynamic Group has undergone in the short space of a single year thanks in part to its acquisition of Orlando Drilling in July 2021.
Looking ahead, the company noted that both its business units are continuing contract discussions which are at various stages with multiple parties and are experiencing a sustained and strong level of enquiry resulting in a significant pipeline of opportunities for short, medium and long-term projects.
It has also engaged ThoroughTec Simulation to develop two bespoke surface drill rig simulators as part of an initiative to combat the skills shortage currently being experienced in Australia and has engaged international skilled recruitment services to further mitigate the labour challenges.
This article was developed in collaboration with Dynamic Group Holdings, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.