The DDH1 Limited (ASX: DDH) share price is shooting higher on Friday after the company provided a business update.
At the time of writing, the drilling company's shares are up 9.55% to $1.20. In comparison, the All Ordinaries Index (ASX: XAO) is ascending 0.9% to 7,665 points.
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How did DDH1 perform?
Investors are buying up DDH1 shares after the company reported robust growth for the year ending 30 June 2021.
According to the release, DDH1 reported preliminary unaudited pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) of $74.8 million.
This represents an increase of 7.9% on the original forecast of $69.3 million in its February 2021 prospectus.
In addition, the company expects preliminary unaudited pro-forma earnings before interest and tax (EBIT) to be $51.1 million, a lift of 16.1%. Its initial public offering (IPO) prospectus predicted the metric to come in at $44 million.
DDH1 attributed the improved performance to revenue exceeding previous estimates. Further training incentives received $2.3 million, with $1.6 million lower depreciation than assumed.
The company is scheduled to release its full-year FY21 audited financial results late next month.
DDH1 managing director and CEO Sy Van Dyk commented:
Since listing on the ASX in March, DDH1 has continued to benefit from the strong macro-economic conditions that suit our diversified commodities exposure, client base and geographic footprint.
… Our Australia-wide, diverse client base and prospective client base remain actively engaged across all stages of mineral exploration and resource-definition drilling and we are delivering the range of quality drilling services that they are demanding.
The preliminary unaudited results for FY21 are very pleasing and are the result of the company's operational excellence, strong balance sheet and disciplined investment in growth.
About the DDH1 share price
From its debut on the ASX in March, DDH1 shares have gained close to 40%. The DDH1 share price is nearing its all-time high of $1.265. It is currently just 5% shy of this record.
DDH1 presides a market capitalisation of roughly $408.7 million, with 342 million shares on its books.
