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ADF Group posts 2019 financial results

Industrial
09 April 2020 09:07 (EDT)

The North American steel super structure manufacturer ADF Group (TSX:DRX) has posted their 2019 financial results.

The company settled ligations in the USA, which resulted in a net loss of $2.1 million.

The company write down $7.7 million due to the settlement.

The Florida suit was settled in October of 2019, and involved a dispute over a structural steel and fabrication installation contract.

The company closed the year with an order backlog of $328.7 million, nearly $110 million more than as at January 31, 2019.

ADF had $65 million worth in new contracts added to the Corporations backlog since the end of the 2020 fiscal year.

The company has announced it has not had any impact on operations from COVID-19. The company has been listed as an essential services in most of the regions in which it operates.

ADF recorded revenue for the year of $179.7 million, up from $135.1 million the year before.

CEO of ADF Jean Paschini said the out of court settlement had affected what would have otherwise been a very good year for the company.

“Renewing our backlog remains one of our top priorities, and our sustained efforts continue to pay off.

“We have signed $300 million worth in new contracts during the 2020 fiscal year, and more recently we have secured additional contracts for an estimated total value of $65 million, including, among others, a major industrial building in Montreal.

“Alongside this objective, we remain determined ed and work tirelessly and collaboratively to achieve another common goal, which is to continue to find ways to improve and enhance operational efficiency and excellence,” he said.

ADF Group Inc (DRX) was trading at $0.88 per share at previous market close.

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