Australia based Industrial conglomerate holding company, WestStar Industrial (ASX: WSI) has announced that its prefabricated concrete construction business Precast Australia has been awarded a significant contract by PACT Construction (PACT) in the construction of the new Arthouse Apartments building in Joondalup, north of Perth, Western Australia.
In partnership with PACT, Edge Visionary Living is developing the seventeen-level Arthouse Apartments complex and for that Precast Australia has won the contract to supply precast walls.
Further, Precast Australia has also been awarded a contract to supply precast concrete for UWA’s new Faculty of Engineering and Mathematical Sciences building ‘EZONE’ UWA by Perkins Builders. Together the PACT and Perkins Builders contracts represent around $1.9 million in work to Precast Australia. This is the company’s first significant award with PACT following on from a small contract at the Camfield in the Optus Stadium precinct. The company is looking forward to building a strong relationship with PACT.
Perkins Builders are a long-standing client of WestStar and the company feels that it is a strong endorsement that such a respected builder is a repeat client. The management of the company is seeing a genuine uplift in the precast market with significant works which have been out to tender for a long time finally being awarded.
The Precast Australia contracts combined are expected to represent additional revenue to the Company in excess of $2.7 Million. As per the company's announcement, the precast market is showing signs of improvement with activity and award levels picking up significantly.
With these awards, WestStar has accumulated contracts totalling ~$33 Million for the FY 2019.
During the half year ended 31 December 2018, Precast Australia was awarded scope extensions totalling $800k by the Salini Impregilo – NRW Joint Venture on the Forrestfield-Airport Link Project. The Forrestfield-Airport Link is one of Western Australia’s most transformational public transport projects, consisting of a train line connecting Forrestfield to the city, opening up Perth’s eastern suburbs to rail for the first time.
For the half year ended 31 December 2018, WestStar reported revenue from ordinary activities of $10.333 million, up 238% on the previous corresponding period (pcp).
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $0.023, up by 9.524% during the day’s trade with a market capitalisation of ~$10.41 Million as on 28 March 2019. The counter opened the day at $0.023 and touched a day’s low of $0.021 with a daily volume of ~ 259,518. The stock has provided a year till date return of 40% & also posted returns of 23.53%, 61.54% & -8.70% over the past six months, three & one-month period respectively. It has a 52-week high price of $0.027 and touched 52 weeks low of $0.012, with an average volume of ~ 2,332,614.