Lincoln Crowne & Company Australian Engineering & Mining Services Sector Update for the week ended 5th September 2014

1. 5 September 2014 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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WEEKLY
Australian Engineering & Mining Services
M&A Rumour and Activity
The Australian market was down over the week with the S&P / ASX100 ending at 4649 points, weighed down by the continual slump in iron ore
prices to a five year low of $US83.60 a tonne. As a result of increasing concerns surrounding China’s property market, and a flood of supply
from international miners, BHP Billiton, Rio Tinto and Vale, the falling price of iron ore has shaved approximately $6 billion off Australian iron ore
miners’ market capitalisation, taking it to just above $12 billion. The Australian dollar increased over the week closing at US93.8 cents, on the
back of better than expected trade deficit data and the European Central Bank cutting interest rates to a historical low of 0.05 percent.
Global provider of technology based products for locomotives, freight cars and passenger transit vehicles, Wabtec Corporation (NYSE: WAB),
has acquired C2CE Pty Limited (www.c2ce.com.au), a Perth based provider of railway signal design, project management, installation and
communications engineering solutions to the Australian and Southeast Asian resources and industrial sectors. The strong regional presence
and technical resources of C2CE is expected to complement and increase Wabtec’s electronics, signaling and train control capabilities, whilst
allowing Wabtec to expand geographically. As at 31 December 2013, C2CE recorded annual sales of circa $35 million and employed two
hundred employees.
In line with Canadian construction and engineering services provider, WSP Global Inc.’s (TSX:WSP), vision of becoming one of the world’s top
three engineering consultancy firms by 2020, it has agreed to acquire British builder Balfour Beatty plc’s (LSE:BBY), subsidiary, Parsons
Brinckerhoff Group Inc. for an enterprise value of $US1.24 billion, as a means to expand its presence in Australia and the US. This acquisition
follows WSP’s acquisition of Australia-based structural engineering firm, WINWARD Group Pty Limited, in June 2014.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
ASL Announced that the jury has failed to reach a verdict in relation to
the tax evasion charges brought against Managing Director, Mr
Sayers, and has been discharged. Mr Sayers resumes all duties
as Managing Director of the Company, effective immediately
MLD Announced it has resolved to raise up to $58.5M through a
placement of 30M shares at an issue price of $1.95 per share.
The placement will maintain financial capacity to drive further
growth and provide increased liquidity in MACA’s ordinary
shares. Also declared a fully franked special dividend of $0.25
per share
DCG Announced that the S&P Dow Jones Indices through its
September 2014 Quarterly Rebalance review has removed DCG
from the S&P/ASX All Australian 200 Index, effective after the
close of trading 19 Sept 2014
STS Announce the appointment of Mr Peter Brecht as a Non-
Executive Director. Mr Brecht was previously the Managing
Director - Construction Australia for Lend Lease, CEO of
Bilfinger Berger Australia and the Managing Director of Abigroup
OW Announced it secured a 12 month contract for miscellaneous
works on the Chevron-operated Gorgon Project, with the value not
to exceed $170M. Kerry Sanderson will retire as a Director,
effective 30 Sept 2014
SWK Disclosed FY2014 full year results, where it recorded a 19.5%
fall in Revenue to $117.2M, a 45.7% fall in EBITDA to $16.4M, a
85.7% fall in NPAT to $1.5M, and a 68.4% fall in Net Operating
Cash Flow to $11.5M
DSB Disclosed FY2014 full year results, where it recorded a 52.2% fall
in Revenue to $69.4M, a 100% fall in EBITDA, a 117.5% fall in
underlying NPAT to -$1.4M, and a 109.2% fall in Net Operating
Cash Flow to -$1.1M
TTN Announce the appointment of Christine Hayward as CFO and
Company Secretary commencing 8 Sept 2014, with previous
CFO David Thornton moving into an operational role as General
Manager of the RCH temporary accommodation business
GNG Announced Kibaran Resources Ltd appointed GNG to undertake
the feasibility and project evaluation study for its Epanko Graphite
Deposit in Tanzania
UGL Announced that Murray McArdle has resigned as company
secretary and will be replaced by Pryce Dale
Source: Capital IQ, LCC research

2. 5 September 2014 WWW.LCC.ASIA
Company Name
AJ Lucas Group Limited
Austin Engineering Limited
Boart Longyear Limited
Brierty Limited
BSA Limited
Cardno Limited
Calibre Group Limited
Coffey International Limited
Decmil Group Limited
DeltaSBD Limited
E&A Limited
Global Construction Services Limited
Hughes Drilling Pty Limited
Imdex Limited
Leighton Holdings Limited
Logicamms Limited
Matrix Composites & Engineering
Nomad Building Solutions Limited
Southern Cross Electrical Engineering
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
WEEKLY
Australian Engineering & Mining Services
Market Cap Open Price Close Price Week High Week Low Weekly Volume EV/ EV/
Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL 184 0.70 0.69 0.72 0.67 ▼ -1.4% NM NM
ASL 383 1.30 1.23 1.32 1.18 ▼ -5.8% 4.6x 11.5x
AAX 91 0.57 0.55 0.59 0.54 ▼ -4.4% NM NM
ANG 113 1.23 1.35 1.45 1.21 ▲ 9.3% 13.1x 48.8x
BLY 69 0.17 0.15 0.17 0.15 ▼ -9.1% 16.0x NM
BKN 783 4.70 4.58 4.83 4.52 ▼ -2.6% 7.7x 13.6x
BYL 65 0.58 0.59 0.59 0.56 ▲ 2.6% 2.6x 4.4x
BOL 81 0.16 0.17 0.17 0.16 ▲ 6.3% 4.2x 12.6x
BSA 39 0.14 0.17 0.17 0.14 ▲ 21.4% NM NM
CDD 1,121 6.55 6.88 7.00 6.54 ▲ 5.0% 9.7x 12.0x
CGH 160 0.48 0.48 0.49 0.45 — 0.0% 3.2x 6.3x
COF 83 0.36 0.33 0.36 0.31 ▼ -8.5% 6.1x 9.4x
DCG 314 2.03 1.86 2.09 1.84 ▼ -8.4% 3.2x 3.6x
DSB 7 0.18 0.15 0.34 0.34 ▼ -19.4% NM NM
DOW 2,077 4.89 4.77 4.93 4.75 ▼ -2.5% 3.6x 6.2x
EAL 59 0.50 0.46 0.50 0.46 ▼ -7.1% 6.0x 7.4x
EGN 37 0.12 0.12 0.15 0.15 — 0.0% 9.4x NM
EHL 129 0.22 0.23 0.23 0.21 ▲ 4.7% 6.4x NM
EVZ 8 0.04 0.04 NM NM — 0.0% NM NM
FWD 122 2.08 2.01 2.16 2.01 ▼ -3.4% 6.5x 16.8x
GCS 78 0.48 0.46 0.50 0.46 ▼ -4.2% 5.1x 8.9x
GNG 144 0.83 0.96 0.96 0.81 ▲ 15.8% 8.0x 9.0x
HDX 41 0.19 0.20 0.21 0.19 ▲ 2.6% 4.3x 8.4x
IMD 157 0.76 0.73 0.77 0.72 ▼ -4.6% NM NM
LEI 7,569 22.63 22.36 22.85 22.28 ▼ -1.2% 5.0x 8.6x
LCM 75 1.01 1.07 1.08 1.01 ▲ 5.4% 16.8x 28.0x
LYL 79 2.10 2.02 2.14 2.00 ▼ -3.8% 4.9x 6.0x
MLD 407 2.20 2.01 2.25 1.99 ▼ -8.6% 2.8x 4.5x
MAH 137 0.12 0.11 0.13 0.11 ▼ -8.3% 1.2x 2.9x
MYE 43 0.52 0.58 0.58 0.52 ▲ 10.6% 3.7x 9.1x
MIN 1,825 10.70 9.78 10.76 9.66 ▼ -8.6% 3.6x 6.4x
MCE 101 1.10 1.07 1.11 1.06 ▼ -2.3% 4.8x 12.1x
MND 1,450 15.66 15.65 15.88 15.37 ▼ -0.1% 5.8x 6.6x
MRM 807 2.32 2.20 2.33 2.20 ▼ -5.2% 7.9x 11.6x
NOD 12 0.04 0.04 0.04 0.04 — 0.0% 5.1x NM
NWH 284 1.06 1.02 1.06 1.02 ▼ -3.3% 2.7x 4.5x
OTC 45 0.19 0.24 0.24 0.19 ▲ 23.7% 3.8x 5.3x
PRG 348 2.84 2.93 2.97 2.80 ▲ 3.2% 6.5x 7.9x
RCR 466 3.23 3.40 3.47 3.23 ▲ 5.3% 6.5x 8.9x
RQL 39 0.14 0.13 0.13 0.12 ▼ -10.7% 9.9x NM
SND 78 1.04 0.99 1.04 0.99 ▼ -4.3% 6.2x 6.6x
SDM Sedgman Limited 149 0.58 0.66 0.68 0.58 ▲ 13.9% 6.9x NM
SSM Service Stream Limited 91 0.22 0.24 0.25 0.22 ▲ 9.3% 8.1x 13.2x
SWL 165 1.75 1.89 1.89 1.75 ▲ 7.7% 7.1x 8.0x
SXE 94 0.59 0.58 0.59 0.57 ▼ -0.9% 3.2x 5.4x
STS 34 0.53 0.54 0.55 0.53 ▲ 1.9% 1.8x 7.4x
SWK 46 0.27 0.28 0.29 0.27 ▲ 3.7% 3.8x 19.1x
TPP 14 0.08 0.08 0.08 0.08 ▲ 5.2% 24.3x 30.7x
TTN 93 1.92 1.83 1.94 1.83 ▼ -4.4% 4.3x 5.5x
TSE 807 1.75 1.58 1.78 1.55 ▼ -10.0% 6.0x 9.3x
UGL 1,052 6.45 6.43 6.60 6.42 ▼ -0.3% 23.0x 54.1x
VMG 34 0.01 0.01 0.01 0.01 ▼ -8.3% NM NM
WDS 136 1.00 0.94 1.04 0.93 ▼ -6.0% 3.6x 6.5x
WOR 3,888 16.66 15.75 16.96 15.68 ▼ -5.5% 8.5x 9.8x
WTP 185 0.95 0.99 1.01 0.94 ▲ 4.2% 1.0x 2.3x
Source: Capital IQ, LCC research
Ausdrill Limited
Ausenco Limited
Bradken Limited
Boom Logistics Limited
Downer EDI Limited
Engenco Limited
Emeco Holdings Limited
EVZ Limited
Fleetwood Corporation Limited
GR Engineering Services Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
Mineral Resources Limited
Monadelphous Group Limited
Mermaid Marine Australia Limited
NRW Holdings Limited
OTOC Limited
Programmed Maintenance Services
RCR Tomlinson Limited
Resource Equipment Limited
Saunders International Limited
Seymour Whyte Limited
Structural Systems Limited
Swick Mining Services Limited
Tempo Australia Limited
Titan Energy Services Limited
Transfield Services Limited
UGL Limited
VDM Group Limited
WDS Limited
WorleyParsons Limited
Watpac Limited