Business Description:
Campbell Brothers Limited (CPB) is a commercial services company, providing analytical testing services, supplying local and imported chemicals to a range of industries, and distributing non-food consumable products. CPB operates under three business divisions: ALS Group (ALS), Campbell Chemicals, and Reward Distribution in Australia, New Zealand, Asia, North and South America, the Pacific and Africa.

Strategy Analysis:
CPB will focus its attention on the Laboratory Services division where it has shown competitive advantage and a proven business model. Geographical expansion for ALS Laboratory Group is achieved through further acquisitions, opening of new laboratories and capacity expansions in Europe, Asia and North America, also diversifying into new analytical services market. This division will continue to be the key profit contributor. Campbell Chemicals is seeking to capitalize on a lower cost base and focus growth on servicing key markets. Reward Distribution is expected to see gains in sales post consolidation of its national distribution operations and rationalisation of warehouses. Campbell Brothers reported NPAT up 54.5% to $102.34m for the half-year ended 30 September 2011. Revenues from ordinary activities were $667.55m, up 21.9% from the same period last year. All divisions within the ALS laboratory services business recorded increased profit contributions and margins over the previous corresponding period. In particular, strong growth in global mineral exploration activity lifted demand for the analytical testing services provided by ALS Minerals division. Diluted EPS was 151.34 cents compared to 104.34 cents last year. Net operating cash flow was $82.87m compared to $64.59m last year. The interim dividend declared was 95 cents compared with 65 cents last year.