Lincoln Crowne & Company Weekly report on the Australian Engineering & Mining Services Sector

1. 12 July 2013 WWW.LCC.ASIA
IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be
accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee
or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is
made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied
upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
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WEEKLYAustralianEngineering&MiningServices
Macro Market Commentary
The market made solid weekly gains as the resources sector recovered although some ground was lost late in the week
after China's finance minister Lou Jiwei lowered expectations for China’s economic growth. Lou, speaking in the US, said 7%
growth is likely this year (lower than the government's 2013 target of 7.5%). The Australian dollar was largely flat ending the
week at US91.5 cents.
Standard & Poor’s has released survey results indicating capex by Australian corporates outside the financial sector could
tumble by 12% this year on a slowdown in mining investment. The decline would be the worst capex growth figures in the
last 10 years. LCC expects those companies which can deliver productivity improvements and diversify revenue sources
will thrive in the long term as shutdowns and other vital maintenance programs are undertaken.
Source: Capital IQ
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
AAX Acquired the Canadian oil sands business Projex Technologies to
grow its energy business and expand its offering in Canada’s oil
sands market. The acquisition price of $15.2M represents a
multiple of 2.9 times anticipated 2014 full year EBITDA of $5.2M.
The acquisition, which is subject to a number of conditions
precedent, is expected to be completed in late July 2013. AAX will
fund the acquisition from available cash and facilities
TPP Released its Appendix 4C for the three months to 30 June
2013. Cash at the end of the June 2013 quarter has increased
to $1.7M from the previous quarter’s balance of $1.5M. This
includes receipt of $500,000 from new shares issued and net
operating cash outflow representing an increasing investment
in working capital for on-going contracts including the recently
awarded contract for the refurbishment of a fuel storage tank in
the Pilbara
AJL Has provided a market update on the dispute in relation to the
Elliott Facility. AJL maintains its intention to dispute and defend
vigorously any entitlement of either Elliott or Athena to recover
damages if any such claim is brought by them and in respect of
which those companies are seeking more information through
preliminary court processes. AJL is seeking more details and
evidential material as to how either Elliott or Athena has suffered
any recoverable damage
WOR Has been awarded a contract by Sasol North America, Inc.
(Sasol) for an integrated GTL and ethane cracker complex. The
contract is for WOR to provide Integrated Program
Management Team (IPMT) services for the frontend
engineering and design phase, with the intent to subsequently
provide IPMT services to the engineering, procurement and
construction phase of the project. Current project costs are
estimated between US$16 to US$21B
Source: Capital IQ, Thomson Reuters, LCC research
EGN Has accepted the resignation of its Chief Executive Officer Mr
Dennis Quinn. Mr Ross Dunning AC has been appointed as
interim Managing Director
3800
3900
4000
4100
4200
12 Jun 13 27 Jun 13 12 Jul 13
S&P/ASX 100 Index
0.900
0.920
0.940
0.960
0.980
12 Jun 13 27 Jun 13 12 Jul 13
AUD vs USD

2. 12 July 2013 WWW.LCC.ASIA
IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be
accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee
or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is
made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied
upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
Page 2 / 2
WEEKLYAustralianEngineering&MiningServices
Market Cap Open Price Close Price High Low Weekly Volume EV/ EV/
Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL 260 1.24 1.23 1.25 1.18 ▼ -0.8% NM NM
ASL 312 0.91 1.00 1.03 0.81 ▲ 9.9% 2.7x 4.6x
AAX 262 1.86 2.12 2.20 1.77 ▲ 14.3% 4.0x 4.7x
ANG 251 3.15 3.43 3.44 3.01 ▲ 8.9% 5.1x 5.9x
BLY 223 0.51 0.49 0.52 0.47 ▼ -3.9% 2.3x 3.7x
BKN 866 4.39 5.15 5.18 4.29 ▲ 17.3% 5.6x 7.4x
BYL 31 0.25 0.28 0.28 0.25 ▲ 12.0% 1.8x 3.0x
BOL 52 0.12 0.11 0.12 0.11 ▼ -4.3% 2.7x 4.9x
BSA 39 0.17 0.17 0.17 0.16 0.0% 4.8x 12.2x
CDD 767 5.18 5.34 5.43 5.16 ▲ 3.1% 6.7x 7.8x
CGH 97 0.34 0.32 0.35 0.31 ▼ -6.0% 1.5x 2.2x
CLO 936 1.13 1.21 1.24 1.10 ▲ 6.6% 8.1x 8.4x
COF 36 0.12 0.14 0.15 0.12 ▲ 16.7% 3.4x 4.6x
DCG 334 1.89 1.99 2.02 1.89 ▲ 5.0% 3.5x 3.8x
DSB 16 0.34 0.34 0.35 0.34 0.0% 2.5x 3.2x
DOW 1656 3.50 3.82 3.91 3.44 ▲ 9.1% 3.4x 6.2x
EAL 71 0.51 0.63 0.63 0.51 ▲ 23.5% 8.1x 10.0x
EGN 47 0.16 0.15 0.17 0.15 ▼ -6.3% NM NM
EHL 143 0.25 0.25 0.26 0.22 ▼ -2.0% 2.4x 5.1x
EVZ 13 0.05 0.06 0.07 0.05 ▲ 20.0% 8.5x 14.2x
FWD 265 4.50 4.38 4.82 4.11 ▼ -2.7% 4.3x 5.7x
FGE 441 4.52 5.12 5.14 4.40 ▲ 13.3% 3.4x 4.3x
GCS 77 0.43 0.45 0.45 0.41 ▲ 5.9% 3.4x 5.1x
GNG 65 0.43 0.43 0.44 0.43 0.0% 3.6x 3.9x
HDX 39 0.21 0.22 0.22 0.21 ▲ 4.9% 3.5x 5.2x
IMD 157 0.71 0.75 0.78 0.68 ▲ 4.9% 3.1x 3.6x
LEI 6117 16.90 18.14 18.49 16.01 ▲ 7.3% 3.5x 7.1x
LCM 100 1.26 1.43 1.43 1.26 ▲ 13.5% 5.4x 5.6x
LYL 173 4.39 4.43 4.46 4.32 ▲ 0.9% 4.0x 4.2x
MLD 332 1.80 1.93 1.93 1.73 ▲ 6.9% 3.5x 5.2x
MAH 175 0.14 0.14 0.15 0.14 0.0% 1.1x 2.0x
MYE 52 0.71 0.69 0.73 0.68 ▼ -2.8% 2.0x 2.6x
MIN 1668 8.11 8.97 8.98 8.11 ▲ 10.6% 7.0x 10.5x
MCE 79 0.78 0.84 0.85 0.78 ▲ 7.7% NM NM
MND 1486 15.40 16.34 16.34 14.92 ▲ 6.1% 5.8x 6.6x
NMS 65 0.03 0.04 0.04 0.03 ▲ 9.4% 66.1x NM
NFK 76 0.47 0.47 0.48 0.47 0.0% NM NM
NWH 286 0.95 1.03 1.06 0.92 ▲ 7.9% 1.5x 1.9x
OTC 10 0.05 0.05 0.05 0.05 0.0% 1.2x 1.7x
PRG 298 2.45 2.52 2.53 2.41 ▲ 2.9% 5.8x 7.1x
RCR 295 2.12 2.23 2.29 2.11 ▲ 5.2% 4.3x 5.9x
RQL 41 0.17 0.17 0.17 0.16 0.0% 2.8x 4.5x
SND 62 0.74 0.79 0.80 0.74 ▲ 6.8% 6.9x 7.3x
SDM 149 0.70 0.68 0.75 0.67 ▼ -3.6% 1.5x 2.1x
SWL 82 1.07 1.05 1.13 1.05 ▼ -1.9% 6.5x 8.2x
SXE 155 0.83 0.96 1.04 0.83 ▲ 15.7% 4.9x 5.9x
STS 21 0.34 0.34 0.34 0.33 0.0% 2.1x 5.0x
SWK 49 0.28 0.29 0.29 0.28 ▲ 3.6% 1.7x 3.2x
TPP 7 0.05 0.05 0.06 0.05 0.0% NM NM
TSE 430 0.75 0.84 0.86 0.75 ▲ 12.0% 5.0x 9.6x
UGL 1265 6.90 7.71 7.83 6.88 ▲ 11.7% 9.4x 12.9x
VMG 11 0.01 0.01 0.01 0.01 0.0% NM NM
WDS 53 0.38 0.37 0.39 0.36 ▼ -3.9% 2.5x 5.5x
WOR 5306 19.94 21.50 21.58 19.86 ▲ 7.8% 10.2x 11.3x
WTP 110 0.58 0.60 0.60 0.58 ▲ 3.5% NM NM
Source: Capital IQ, LCC research
Engenco Limited
Emeco Holdings Limited
Forge Group Limited
Global Construction Services Limited
Coffey International Limited
Clough Limited
Cardno Limited
BSA Limited
Brierty Limited
Decmil Group Limited
Austin Engineering Limited
Ausdrill Limited
Downer EDI Limited
Company Name
AJ Lucas Group Limited
Hughes Drilling Pty Limited
Transfield Services Limited
Swick Mining Services Limited
Tempo Australia Limited
Programmed Maintenance Services
Norfolk Group Limited
Neptune Marine Services Limited
Monadelphous Group Limited
Mineral Resources Limited
Resource Equipment Limited
Saunders International Limited
Southern Cross Electrical Engineering
Matrix Composites & Engineering
OTOC Limited
RCR Tomlinson Limited
NRWHoldings Limited
Boart Longyear Limited
GR Engineering Services Limited
Calibre Group Limited
E&A Limited
Bradken Limited
DeltaSBD Limited
Boom Logistics Limited
EVZ Limited
Fleetwood Corporation Limited
Ausenco Limited
Watpac Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
WorleyParsons Limited
Sedgman Limited
VDM Group Limited
WDS Limited
Structural Systems Limited
Logicamms Limited
Imdex Limited
Seymour Whyte Limited
UGL Limited
Leighton Holdings Limited