Global testing, inspection & certification business, ALS Limited, gave investors a look at the company’s first half result on Wednesday as it announced a strong result were driven by its Life Sciences and Commodities divisions.
ALS declared an underlying NPAT of $127.1 million for the first half of FY22, an increase of 57.7% compared to the pcp. Revenue from continuing operations came in at $1,031.1 million, an increase of 22.9% due to a strong performance from Life Sciences and Commodities
All three Life Sciences businesses delivered double-digit organic growth as volumes surpassed pre-pandemic levels, growing revenue by 19.0%. The Commodities division continued to benefit from a strong commodity cycle, drove a revenue increase of 37.7%, with Geochemistry in particular, seeing strong sample volume growth from both major and junior mining clients as it capitalises on its market leading position.
The group continues its strategy focused on value enhancing acquisitions, particularly in the food and pharmaceutical markets, targeting opportunities that fit with existing capabilities or attractive adjacent markets.
ALS declared an interim dividend of 15.8 cps an increase of 85.9% compared to H1 FY21, representing a payout ratio of 60% of underlying NPAT, reflecting the strong first half performance and liquidity position
ALS said it has voluntarily elected to repay COVID-19 pandemic-related government net subsidies in all countries where repayment mechanisms exist, including $3.0 million in Australia, with a provision in place to repay $21.5 million in Canada.
ALS Chairman, Bruce Phillips commented “This is a very pleasing performance which demonstrates that the Group is capturing organic and inorganic growth opportunities as the global economy continues to recover. ALS has emerged as a stronger company from the early stages of the COVID-19 pandemic and we remain well-positioned to capitalise on the long- term megatrends driving structural growth across the Testing, Inspection and Certification industry.”