OTOC jumps on profit upgrade

UPDATE 3.15pm: Shares in OTOC jumped after the mine camp builder upgraded its full-year earnings guidance and gave a positive outlook for the year ahead.

OTOC said it expected to post full-year revenue of $113 million, in line with last year, but expected to beat last year's full-year EBITDA figure of $10.9 million.

The company said it ended the financial year with $15 million in cash and had a strong pipeline of work for the year ahead largely because of its revenue diversification strategy.

OTOC chief executive Simon Thomas said the result was pleasing given the reduction in mining capital expenditure in WA and generally subdued trading conditions in the resources services sector.

These financial results reflect the benefits of our strategy of targeting a more diversified operating and revenue base, resulting in higher quality earnings and greater profit margins," he said.

"In the year ahead, we will seek to capitalise on OTOC's strong financial position to further diversify the company's service offerings and establish OTOC as a preeminent infrastructure services company."

OTOC shares closed up two cents, or 20 per cent, at 12 cents.