XRF Scientific (ASX:XRF) share price soars 14% on revenue growth

The XRF Scientific Ltd (ASX: XRF) share price is flying higher today after the company released its quarterly trading report to the market.

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XRF Scientific Limited (ASX: XRF) shares are surging higher today after the scientific instrument manufacturer released its quarterly trading report.

At the time of writing, the XRF Scientific share price is trading 13.79% higher to 33 cents.

XRF Scientific report details

The March quarter delivered solid results for the company. Given XRF manufactures and sells predominantly precious metal equipment/instruments, it's not all too surprising to see the company faring well.

XRF Scientific's unaudited results show $8.2 million in revenue for the recent quarter. This is an increase of 20% compared to the $6.9 million for the same period last year. The elevated revenue inflated the company's profits with profit before tax growing 81% to $1.8 million.

With mining companies ramping up sample testing, XRF's consumable product sales performed strongly, coming in at $2.67 million. Additionally, XRF's sales of capital equipment were reported to be robust – currently with an order book of two months' worth of sales.

Furthermore, precious metal sales experienced a strong quarter with platinum labware being in high demand. On that front, XRF Scientific's Germany office has been expanding market share, while maintaining profitability throughout the entire March quarter.

Looking forward

In further news boosting the XRF Scientific share price, the company highlighted its future quarter outlook, saying:

Based on the current level of activity we expect the June 2021 quarter to generate a strong result. During this upcoming quarter, we are continuing with expansion activities such as new product development, M&A opportunities and increasing our precious metals customer base in Europe. 

XRF Scientific share price shines

For a company with a small market capitalisation, at $39 million, the XRF Scientific share price has been delivering solid returns of late. In the last year, shares have rallied 94% to their highest level since 2013.

This didn't come so easy for long-term shareholders though. Prior to these substantial gain, XRF shares fell 37% during the COVID-19 crash.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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