Ausdrill (ASL) is an international mining services group who provides specialist drilling services to the mining sector. The company's operates mainly in Australian and Africa, but does have offices in the United Kingdom.

ASL has a five main business segments; Contract Mining Services Australia, Contract Mining Services Africa, Manufacturing, Supply and Logistics and Diamond Communication.

Over the past few years, ASL has made a conscious decision to diversify its business and offer more services then its traditional, drill, blast and exploration drilling business.

Click Now for FREE Trading Recommendations

The diversification has seen the company being able to become 'the complete service company' to the mining industry in both Australia and Africa.

ASL continues to able to win key contracts, with an aim to make these contracts as long-term as possible for income stability.

Projects

The company has completed a raft of acquisitions over the last few years, in line with their strategy to become 'the complete service company'.

The last acquisition was of Connector Drilling in early 2011, with the deal increasing the company's presence in Western Australia and in particular the growing Pilbara region.

ASL has also been able to secure key contracts from some of the biggest miners in Australia, including Fortescue and BHP Billiton.

The contracts are not all Australian-based either, with ASL winning several gold contracts in African.

As at the company's last update, ASL had approximately $1.84 billion work in hand for FY12 onwards in the mining services business alone.

With the mining sectors growing in Australia and across Africa, ASL is in position to take advantage of this growth and build upon its already strong relationships.

Financial Position

ASL has achieved solid growth over the last few years and profits are hitting record levels.

Profit jumped 52% to a record $73.3 million in FY11, on the back of 32.3% growth in revenue to $834.6 million.

The company provided earnings guidance in December, expecting to report a first-half profit of $48-$50 million on revenue of approximately $500 million.

Stocks To Buy: Ausdrill (ASL) is a post from: Australian Stock Report Share Tips

Related posts:

1. Industrials Stocks News: Downer EDI (DOW)