On 18 December 2018, Weststar Industrial Limited (ASX: WSI), an Australia based industrial conglomerate holding company has announced that its wholly-owned engineering contractor business SIMPEC Pty Ltd has received an award of $4.5 million excluding GST for works at the Cape Lambert Port Facility from Rio Tinto Iron Ore.
Under the agreement, SIMPEC is supposed to design and construct a Remote Draft Survey system at the Cape Lambert Port Facility at Rio Tinto Iron Ore which is in Western Australia. The purpose of designing and building a Remote Draft Survey System will enhance the ship turnaround and safety. This project is expected to start in December 2018 after Q2 of 2019 completes.
SIMPEC feels exceptionally proud to disclose that its order book is growing in providing service to Tier-1 mining companies. The contract of A$4.5 million, won by the company is the largest contract in the order book. It is also a proof that SIMPEC’s team is hard working and their efforts have led to secure a contract of A$4.5 million.
The award of A$4.5 million has built an order book of approximately 30 million. Since last year, SIMPEC has received more than A$150 million offers, and in FY2019, it is further looking forward to tendering more projects throughout Australia.
The official listing date of WSI on ASX is 07 June 2006. Since then, its performance is -97.37%. The performance of the company for the last ten years was -97.21%, and its previous one-year performance was -34.78%.
For the financial year 2018 ending on 30 June 2018, the company incurred a net loss of $3,067,725. The balance sheet of the company does not appear healthy as the company is under substantial net liabilities of $456,388 which indicates that the company is not in a state to meet the long-term obligations. The position of current assets of the company is much below the current liabilities which the company owns which indicates that the company does not hold a place where it can meet the short-term obligations and the working capital requirements. Also, FY2018 reports an increase in the accumulated losses which indicates that the operating performance of the company is not good. Also, it might create a negative impression on the investors and the shareholders of the company. FY2018 also reports a deficiency in the total shareholder’s equity.
The company has used $135,544 in its operating activities where the primary source of cash outflow was in the form of payment to employees and the suppliers. The other source of cash outflow was through the interest payment.
The company has used $121,864 in its investing activities where the primary source of cash outflow was in the form of payment of bank guarantees and purchase of property, plant & equipment.
There is an inflow of $410,019 from its financing activities where the cash inflow was through the issue of shares and borrowings. The company also made the payment of loan worth $750,000.
By the end of FY2018, the net cash and cash equivalent available with the company were $1,711,826. By the mid-day trading on 19 December 2018, the closing price of the share was A$0.014.