Lincoln Crowne Weekly Engineering & Mining Services Research Report For Week Ended 2nd August 2013 - M & A activity on the rise

1. 2 August 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.
WEEKLYAustralianEngineering&MiningServices
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Market review
The Australian dollar ended the week below the US90 cent mark following weak producer price index data which gave the
Reserve Bank of Australia further incentive to cut interest rates. The dollar also dropped sharply mid-week after Reserve
Bank of Australia Governor, Glenn Stevens, indicated that last week’s soft inflation numbers provided scope to cut rates.
Australian shares surged through the week as the market followed global stocks higher on the back of positive
manufacturing news from China and favourable employment data in the US. The week ended on a sour note as Treasurer
Chris Bowen revealed four-year forward revenue estimates have been slashed by $33B, with the budget deficit to hit $30.1B
this financial year.
Source: Capital IQ
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
BYL Has entered into a new joint venture with Kalayura Construction
Services known as the Brierty Kalayura Joint Venture. The joint
venture provides BYL’s clients the opportunity to engage an
Aboriginal contracting company for civil and mining infrastructure
works
LEI Has taken 100% ownership of telecommunications, energy
and infrastructure services company, Silcar Pty Ltd. Silcar
was a 50/50 joint venture between Thiess and Siemens. The
acquisition was agreed so that both companies could better
focus their respective strategic portfolios
CLO Received a conditional proposal from its major shareholder,
Murray & Roberts Holdings Limited, to acquire all the outstanding
shares in CLO that it does not already own at $1.46 cash per
share. Murray & Roberts is a major South African engineering,
contracting and construction services company and first invested
in CLO in 2003. They currently own 61.6% of CLO
LEI Thiess has been awarded a $650M contract to deliver the long
awaited Moreton Bay Rail Link which will service a major
suburban growth corridor in South East Queensland. Thiess is
the construction spearhead of the Trackstar team which
includes design subcontractors Aurecon, AECOM, HASSELL,
and geotechnical subcontractor Golder Associates
DOW Has been invited to enter into discussions with Slater & Gordon
Lawyers (in relation to a proposed shareholder class action),
failing which Slater & Gordon Lawyers have been instructed to
commence proceedings. No details of the amount of claims have
been provided and DOW will vigorously defend any proceedings
RCR Has taken 100% ownership of infrastructure engineering
company Norfolk Group Limited in accordance with the
previously announced scheme of arrangement
EHL Announced that the Managing Director, Mr Keith Gordon, has
stepped down. Mr Gordon will remain in his current position until
a successor is appointed and commences with EHL
WDS Expects NPAT for the 12 months to 30 June 2013 to slightly
exceed the upper end of its February guidance range of $6 to
$8M. Revenue for FY13 is now expected to be in the range of
$350 to $355M, compared with the Company’s previous
guidance of $330-350M
Source: Capital IQ, Thomson Reuters, LCC research
3800
4000
4200
4400
3 Jul 13 18 Jul 13 2 Aug 13
S&P/ASX 100 Index
0.880
0.900
0.920
0.940
3 Jul 13 18 Jul 13 2 Aug 13
AUD vs USD

2. 2 August 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.
WEEKLYAustralianEngineering&MiningServices
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Market Cap Open Price Close Price High Low Weekly Volume EV/ EV/
Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL 418 1.44 1.57 1.61 1.43 ▲ 8.7% NM NM
ASL 351 1.10 1.13 1.17 1.08 ▲ 2.3% 2.8x 4.8x
AAX 187 1.50 1.52 1.55 1.46 ▲ 1.3% 2.9x 3.4x
ANG 305 4.00 4.17 4.20 3.98 ▲ 4.3% 6.0x 6.9x
BLY 248 0.54 0.55 0.56 0.51 ▲ 1.9% 2.4x 3.8x
BKN 836 4.60 4.97 5.05 4.53 ▲ 8.0% 5.5x 7.2x
BYL 32 0.28 0.29 0.30 0.28 ▲ 5.5% 1.9x 3.0x
BOL 68 0.13 0.15 0.15 0.13 ▲ 11.5% 3.0x 5.3x
BSA 40 0.17 0.18 0.18 0.17 ▲ 6.1% 4.9x 12.5x
CDD 839 5.55 5.84 5.89 5.17 ▲ 5.2% 7.3x 8.5x
CGH 112 0.34 0.37 0.38 0.33 ▲ 7.4% 1.6x 2.5x
CLO 1108 1.10 1.43 1.43 1.10 ▲ 29.5% 10.0x 10.3x
COF 35 0.14 0.14 0.14 0.13 ▼ -3.6% 3.3x 4.5x
DCG 352 2.10 2.09 2.11 2.05 ▼ -0.5% 3.7x 4.0x
DSB 20 0.44 0.43 0.44 0.43 ▼ -2.3% 2.8x 3.5x
DOW 1669 3.74 3.85 3.90 3.67 ▲ 2.9% 3.5x 6.2x
EAL 62 0.55 0.55 0.56 0.52 0.0% 7.3x 9.1x
EGN 53 0.16 0.17 0.17 0.15 ▲ 9.7% NM NM
EHL 149 0.27 0.26 0.27 0.25 ▼ -3.8% 2.4x 5.2x
EVZ 12 0.05 0.06 0.06 0.05 ▲ 16.0% 8.3x 13.9x
FWD 233 3.80 3.85 4.14 3.65 ▲ 1.3% 3.8x 5.1x
FGE 401 4.26 4.65 4.69 4.24 ▲ 9.2% 3.0x 3.8x
GCS 85 0.46 0.50 0.51 0.46 ▲ 8.7% 3.5x 5.3x
GNG 71 0.49 0.47 0.49 0.47 ▼ -4.1% 4.1x 4.5x
HDX 44 0.26 0.24 0.26 0.24 ▼ -7.7% 3.7x 5.6x
IMD 162 0.76 0.77 0.82 0.73 ▲ 1.3% 3.2x 3.7x
LEI 5881 16.50 17.44 17.57 16.16 ▲ 5.7% 3.4x 6.9x
LCM 101 1.45 1.45 1.48 1.41 0.0% 5.5x 5.7x
LYL 162 4.20 4.15 4.20 4.06 ▼ -1.2% 3.7x 3.9x
MLD 355 1.95 2.06 2.11 1.95 ▲ 5.6% 3.7x 5.6x
MAH 175 0.15 0.14 0.15 0.14 ▼ -3.4% 1.1x 2.0x
MYE 56 0.70 0.74 0.78 0.67 ▲ 5.7% 2.1x 2.7x
MIN 1819 9.54 9.78 9.91 9.40 ▲ 2.5% 7.5x 11.3x
MCE 87 0.88 0.92 0.93 0.86 ▲ 4.5% NM NM
MND 1510 16.30 16.60 16.65 15.96 ▲ 1.8% 5.9x 6.7x
NMS 68 0.04 0.04 0.04 0.04 ▲ 5.7% 70.4x NM
NWH 282 0.98 1.01 1.03 0.94 ▲ 3.6% 1.5x 1.9x
OTC 14 0.06 0.08 0.08 0.05 ▲ 36.4% 1.6x 2.2x
PRG 295 2.48 2.50 2.51 2.40 ▲ 0.8% 5.8x 7.1x
RCR 317 2.32 2.39 2.43 2.30 ▲ 3.0% 4.6x 6.4x
RQL 37 0.15 0.15 0.15 0.14 0.0% 2.7x 4.3x
SND 66 0.84 0.85 0.86 0.83 ▲ 0.6% 7.5x 8.0x
SDM 137 0.65 0.62 0.66 0.61 ▼ -4.6% 1.3x 1.9x
SWL 95 1.20 1.23 1.25 1.16 ▲ 2.1% 8.4x 10.5x
SXE 159 1.01 0.99 1.01 0.99 ▼ -2.5% 5.0x 6.1x
STS 23 0.38 0.37 0.39 0.35 ▼ -2.7% 2.2x 5.2x
SWK 50 0.31 0.30 0.31 0.30 ▼ -1.6% 1.7x 3.3x
TPP 8 0.05 0.05 0.05 0.05 ▼ -3.8% NM NM
TSE 489 0.91 0.96 0.97 0.88 ▲ 5.5% 5.3x 10.1x
UGL 1214 7.25 7.40 7.51 7.20 ▲ 2.1% 9.1x 12.5x
VMG 18 0.02 0.02 0.02 0.02 ▲ 5.6% NM NM
WDS 68 0.37 0.47 0.49 0.37 ▲ 27.0% 3.0x 6.6x
WOR 5430 21.75 21.98 22.45 21.54 ▲ 1.1% 10.4x 11.5x
WTP 96 0.55 0.52 0.55 0.52 ▼ -4.6% NM NM
Source: Capital IQ, LCC research
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
Transfield Services Limited
Swick Mining Services Limited
Neptune Marine Services Limited
Monadelphous Group Limited
Mineral Resources Limited
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
Company Name
AJ Lucas Group Limited
Boart Longyear Limited
Calibre Group Limited
Bradken Limited
DeltaSBD Limited
Boom Logistics Limited
EVZ Limited
Fleetwood Corporation Limited
Downer EDI Limited
Ausenco Limited
Ausdrill Limited
Watpac Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
WorleyParsons Limited
Sedgman Limited
VDM Group Limited
WDS Limited
OTOC Limited
RCR Tomlinson Limited
NRWHoldings Limited
Logicamms Limited
Imdex Limited
Leighton Holdings Limited
Programmed Maintenance Services
Seymour Whyte Limited
UGL Limited
Tempo Australia Limited