WestStar Industrial’s order book now exceeds $50m for FY2019

WestStar Industrial Simpec orders ASX WSI
WestStar Industrial’s contract orders for the 2019 financial year to-date now exceed $50 million.

Construction group WestStar Industrial (ASX: WSI) has reported that orders for the 2019 financial year to-date now exceed $50 million, boosted by the company’s construction contractor subsidiary SIMPEC’s performance.

WestStar’s SIMPEC has been awarded an addition $2.5 million in scope extensions to its current Western Australian contracts.

According to WestStar, SIMPEC has grown substantially over the last six months with more than 150 personnel and contractors now working across its current contracts.

Only last month, WestStar reported SIMPEC had secured a $10 million contract to carry out electrical and associated works for Fortescue Metals Group’s (ASX: FMG) Eliwana iron ore operation accommodation camp.

It was SIMPEC’S largest single contract to-date and adds to its current work on other major projects.

“SIMPEC is performing exceptionally well on site and the contract extensions are a good indication of this,” SIMPEC managing director Mark Dimasi said.

“We are very pleased to be part of some of Western Australia’s largest resources projects and thank all our clients for their support,” he added.

SIMPEC continues to tender for new work and WestStar will report the outcomes in due course.

With the growth of SIMPEC and its other contracts, WestStar is expecting a strong start to the new financial year.

WestStar’s clients include mining majors such as Fortescue, Rio Tinto (ASX: RIO), Iluka Resources (ASX: ILU), Tianqi Lithium, Talison Lithium, and BHP Group (ASX: BHP).

Other WestStar contracts are with PACT, Vaughan, Lendlease (ASX: LLC) , ADCO and Ertech.

As WestStar gears up for a positive June quarter and FY2019, the company reported record net cash receipts for the March quarter 2019 of $5.83 million – up from $5.772 in the December quarter.

In addition to SIMPEC, the company’s other operating subsidiaries are Precast Australia, which focuses on concrete fabrication and Distinct Developments which is a property development entity.

Lorna has more than 10 years' experience as a finance journalist and editor. She has written for numerous industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has also covered a myriad of small and large cap ASX and dual-listed stocks.