(MENAFN - ProactiveInvestors - Australia) Coal production and delineation drilling specialists Hughes Drilling (ASX: HDXDA) will consolidate the company's capital on a basis that every ten shares be consolidated into one, following approval from shareholders.
Outstanding shares will reduce from 1,226,333,348 to 122,633,350. Hughes is currently trading on a post consolidated deferred settlement basis under the ticker code HDXDA until 17 December 2012, and will revert back to HDX when the consolidation is complete.
Key dates include the 21st December 2012, when settlement of trades conducted on a deferred settlement basis, and first settlement of trades conducted on the normal T3 basis.
Increase in profit guidance
Just last week Hughes Drilling increased profit guidance, and expects to report a profit before tax of between A5 million and 5.3 million for the six months to the end of December 2012.
This marks a 61% to 71% increase over 2011 profits for the same period.
Hughes Drilling also holds deferred tax assets of A2.8 million.
The continuing strong performance is driven by several factors including Hughes' operating in coal mines generally lower on the cost curve and the company's blast hole operations being a key part of an operating mine's production process.
Also, demand from Hughes' core blue chip client base continues to be robust and exceed the availability of quality equipment from highly productive service providers.