Atlas Development & Support Services shows 65% increase in annualised revenue

PUBLISHED: 30 Nov 2014 @ 22:22 | Comments (0) |

Operational Update

Atlas Development & Support Services Limited (AIM:ADSS), the African focussed support services and logistics company has issued an update on activities in East Africa; With the restructuring programme complete, trading is in line with market expectations, with revenues for the year ending 31 December likely to be in the range of US$38-US$40 million compared to US$23 million in 2013.

On the ground, in line with the advancing resource development in the Turkana region, where the Company is currently supporting a number of international companies operating, Atlas Development is increasing its civil engineering activities with a ramp up of activities including increased well pad construction and road and infrastructure build. Furthermore, additional containerised accommodation has been mobilised to support teams working remotely. The development of the logistics hub in Lockichar has commenced with site clearance underway. Once completed, the site, which will include extensive warehousing, will provide improved support and efficiencies for the Company’s operations, and at the same time offer logistics support to customers requiring storage and distribution services. This will be a key differentiator to other service providers.

On a broader level, the Company continues to make advancements with regards to increasing its service offering and general capabilities to support resource development in East Africa. As exploration activity continues to increase so does demand for the Company’s services. In line with this, strong progress has been made with regards to new contract opportunities, with a number of significant proposals and tenders currently live in multiple countries throughout East Africa.

Carl Esprey, Chief Executive Officer of Atlas Development, said:

“We continue to make excellent progress on the ground, and an annualised revenue of US$38-US$40 million looks highly achievable. The increase of on-ground activity is testament to our much sought after turn-key support service solution, delivered to international standards but by a local company. With the work on our logistics hub currently underway, and extensive development activities elsewhere in the region, we believe this will only improve further.

“Reputation is key and due to our restructuring and established business credentials, we are continuing to receive requests for proposals which we hope to convert into major contracts in the coming months.”

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