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Lincoln Crowne Engineering Mining Services Market Update 11072014

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Engineering & Mining Services Australian public sector market update on Merger & Acquisition and Corporate activity for the week ended 11th July 2014

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Lincoln Crowne Engineering Mining Services Market Update 11072014

  1. 1. 11 July 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. Page 1 / 2 WEEKLYAustralianEngineering&MiningServices M&A Rumour and Activity The Australian market was down over the week with the S&P / ASX100 ending at 4563 points. The Australian dollar increased over the week closing at US93.8 cents. Glenn Stevens warned investors to brace for a slump in the Australian dollar when the US Federal Reserve starts to lift interest rates. Calibre Group Limited (ASX:CGH), a diversified provider of engineering, consulting, project delivery, construction and asset management services, announced that its wholly-owned infrastructure, construction and maintenance services business, G&S Engineering Services Pty Limited (www.g-s.com.au), has acquired Ark Maintenance (www.arkm.com.au), a WA resource-focused maintenance services firm for approximately $3.3 million. The acquisition is consistent with Calibre’s ongoing strategy of expanding and strengthening its capabilities across the broader Resources, Energy and Infrastructure markets nationally. Otto Marine Limited's (SGX:G4F) wholly owned subsidiary Otto Ventures Pte Limited, a marine geophysical services provider for the oil and gas exploration industry in the Asia Pacific region, completed its share purchase agreement to acquire the remaining 10% stake in Go Marine Group Pty Limited (www.gomarinegroup.com.au) for SGD 6.3 million in stock. Go Marine Group is an energy services company that provides integrated marine oil and gas logistics services. It is believed that Ferrovial S.A. (CATS:FER), Bouygues S.A. (ENXTPA:EN) and VINCI S.A. (ENXTPA:DG) are preparing to deliver indicative first round offers for Leighton Holdings’ (ASX:LEI) John Holland operations, rumoured to be due by 24 July 2014. It is also rumoured that AVJennings Limited (ASX:AVJ), Daiwa House Industry Co. Ltd. (TSE:1925) and Sekisui House Ltd. (TSE:1928) are potential suitors for Leighton Holdings’ majority ownership in Devine Limited (ASX:DVN). Kori Holdings Limited (Catalist:5VC), a civil/structural engineering and infrastructure construction services provider, acquired a 51% stake in Fuchiang Construction Pte Limited, a piling works and structural steel works construction services provider, for SGD 2.5 million. News Headlines and Key Sector Developments Ticker News/Event Ticker News/Event BYL Announced the award of a $17M contract to construct the new Airport Drive and associated infrastructure at Perth Airport TPP Announced the award of a $13.4M contract for structural, mechanical, piping miscellaneous works and commissioning support at Rio Tinto’s Cape Lambert Port Expansion DCG Announced the award of a $26M contract for the design, supply, installation and commissioning of Rio Tinto’s Cape Lambert Port B Non Process Infrastructure TSE Announced it has secured a contract to manage Australian Defence facilities across WA, NT, VIC, TAS and SA. The initial contract term is for six years, with options to renew for up to further four years. The annualised value is $270M DOW Announced that its JV with Bombardier Transportation Australia has been awarded a $40M maintenance contract by WA’s Public Transport Authority TTN Unaudited EBIT for the FY14 was in the order of $18.5m, a result well above the $14.5m EBIT achieved during FY13 but lower than the targeted range of $19.5M - $21.0M LEI Announced the appointment of Kirstin Ferguson as an Independent, Non-Executive Director, effective immediately UGL Announced that the Chairman, Mr Trevor C Rowe, will retire at the conclusion of the company’s 2014 AGM with Ms Kathryn Spargo appointed to take his place Source: Capital IQ, LCC research
  2. 2. 11 July 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. Page 2 / 2 WEEKLYAustralianEngineering&MiningServices 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 246 0.87 0.92 0.94 0.87 ▲ 5.7% NM NM ASL 292 0.93 0.94 0.95 0.89 ▲ 0.5% 3.4x 7.2x AAX 92 0.55 0.55 0.56 0.53 ▲ 0.9% NM NM ANG 132 1.63 1.57 1.64 1.54 ▼ -3.7% 7.1x 10.7x BLY 73 0.21 0.16 0.22 0.15 ▼ -22.0% 5.4x NM BKN 722 4.22 4.22 4.27 4.08 — 0.0% 7.4x 12.2x BYL 45 0.40 0.41 0.41 0.40 ▲ 1.3% 1.9x 3.6x BOL 59 0.13 0.13 0.13 0.12 — 0.0% 3.4x 8.3x BSA 22 0.10 0.10 0.10 0.10 ▼ -5.0% 4.5x 15.8x CDD 1,029 6.73 6.41 6.75 6.40 ▼ -4.8% 8.9x 11.0x CGH 145 0.40 0.43 0.43 0.40 ▲ 7.5% 3.5x 7.9x COF 67 0.26 0.26 0.28 0.26 ▲ 2.0% 10.3x 25.6x DCG 313 1.83 1.86 1.90 1.77 ▲ 1.4% 3.5x 3.9x DSB 5 0.12 0.12 0.34 0.34 ▼ -4.2% 3.0x 8.4x DOW 1,977 4.65 4.54 4.67 4.47 ▼ -2.4% 3.6x 6.3x EAL 73 0.57 0.57 0.57 0.55 — 0.0% 6.4x 7.6x EGN 36 0.12 0.12 0.15 0.15 ▼ -4.2% NM NM EHL 119 0.21 0.21 0.22 0.21 ▼ -2.4% 4.9x 175.9x EVZ 3 0.01 0.02 0.02 0.01 ▲ 15.4% 22.6x NM FWD 143 2.36 2.36 2.40 2.27 — 0.0% 5.6x 10.9x GCS 80 0.48 0.47 0.47 0.45 ▼ -1.1% 3.7x 6.0x GNG 105 0.74 0.70 0.78 0.70 ▼ -5.4% 4.5x 4.8x HDX 38 0.19 0.18 0.19 0.18 ▼ -5.3% 4.7x 7.2x IMD 134 0.62 0.63 0.66 0.61 ▲ 2.4% 7.5x 16.8x LEI 6,990 21.03 20.65 21.08 20.23 ▼ -1.8% 3.9x 7.2x LCM 65 0.89 0.93 0.95 0.86 ▲ 4.5% 5.7x 6.6x LYL 95 2.11 2.44 2.50 2.11 ▲ 15.6% 2.6x 2.8x MLD 409 1.97 2.02 2.07 1.86 ▲ 2.8% 2.6x 4.0x MAH 132 0.11 0.11 0.11 0.11 — 0.0% 1.3x 3.1x MYE 31 0.45 0.42 0.45 0.42 ▼ -7.8% 2.3x 4.6x MIN 1,976 9.98 10.59 10.66 9.74 ▲ 6.1% 3.8x 5.8x MCE 113 1.22 1.19 1.23 1.17 ▼ -2.5% 8.3x 35.3x MND 1,560 16.90 16.83 16.99 16.42 ▼ -0.4% 5.8x 6.5x MRM 745 2.06 2.03 2.07 2.00 ▼ -1.5% 7.1x 11.2x NOD 12 0.05 0.05 0.05 0.05 ▼ -2.2% 1.3x 1.5x NWH 273 1.00 0.98 1.04 0.94 ▼ -1.5% 2.4x 3.7x OTC 20 0.11 0.11 0.11 0.10 ▼ -4.5% 1.5x 2.1x PRG 307 2.71 2.60 2.74 2.55 ▼ -4.1% 5.9x 7.1x RCR 400 2.90 2.92 3.03 2.84 ▲ 0.7% 7.4x 9.5x RQL 36 0.13 0.12 0.13 0.12 ▼ -11.5% 5.4x NM SND 71 0.86 0.90 0.92 0.88 ▲ 4.7% 6.6x 7.2x SDM Sedgman Limited 115 0.53 0.51 0.54 0.49 ▼ -3.8% 11.5x NM SSM Service Stream Limited 77 0.21 0.20 0.22 0.20 ▼ -4.8% NM NM SWL 167 1.92 1.90 1.97 1.90 ▼ -0.8% 7.4x 8.2x SXE 91 0.54 0.57 0.57 0.54 ▲ 4.6% 1.9x 2.4x STS 40 0.60 0.64 0.64 0.59 ▲ 6.7% 2.0x 6.0x SWK 43 0.26 0.26 0.27 0.26 — 0.0% 2.4x 6.3x TPP 15 0.09 0.09 0.12 0.08 ▼ -5.6% NM NM TTN 111 2.25 2.19 2.32 2.08 ▼ -2.7% 5.2x 6.5x TSE 651 1.25 1.27 1.29 1.22 ▲ 1.6% 7.0x 13.9x UGL 1,166 7.25 7.10 7.25 7.01 ▼ -2.1% 13.8x 22.2x VMG 31 0.01 0.01 0.01 0.01 — 0.0% NM NM WDS 134 0.94 0.93 0.95 0.90 ▼ -1.6% 2.6x 4.8x WOR 4,552 18.90 18.44 18.90 18.19 ▼ -2.4% 10.5x 11.8x WTP 155 0.81 0.83 0.86 0.78 ▲ 3.1% 1.4x 7.0x Source: Capital IQ, LCC research UGL Limited Ausdrill Limited Watpac Limited Lycopodium Limited MACA Limited MacMahon Holdings Limited Mastermyne Limited WorleyParsons Limited VDM Group Limited WDS Limited Bradken Limited Boom Logistics Limited EVZ Limited Fleetwood Corporation Limited Downer EDI Limited Ausenco Limited Engenco Limited Emeco Holdings Limited Global Construction Services Limited Coffey International Limited Cardno Limited BSA Limited Brierty Limited Decmil Group Limited Austin Engineering Limited Company Name AJ Lucas Group Limited Boart Longyear Limited Calibre Group Limited DeltaSBD Limited Transfield Services Limited Swick Mining Services Limited Mermaid Marine Australia Limited Monadelphous Group Limited Mineral Resources Limited OTOC Limited RCR Tomlinson Limited NRWHoldings Limited Programmed Maintenance Services Seymour Whyte Limited Tempo Australia Limited Titan Energy Services Limited GR Engineering Services Limited E&A Limited Structural Systems Limited Resource Equipment Limited Saunders International Limited Southern Cross Electrical Engineering Matrix Composites & Engineering Hughes Drilling Pty Limited Logicamms Limited Imdex Limited Leighton Holdings Limited Nomad Building Solutions Limited

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