Lincoln Crowne & Company report on developments in the Australian Engineering & Contracting space for the week ended 11th October 2013. Merger activity continues to bubble along with domestic deals being done by Mancala and Wood Group Wagners (both being executed by offshore parties), in addition to listed Cardno continuing its M & A activity looking to acquire US based Haynes Whaley Associates

1. WEEKLY
Australian Engineering & Mining Services
11 October 2013
WWW.LCC.ASIA
M&A Rumour and Activity
The Australian market was up 1.3% for the week, buoyed after the US White House endorsed a non-conditional temporary
increase in the debt limit. If the US cannot agree to raise the borrowing limit, the US could default on its debt by the end of
October. Takeover speculation continues in the industry with Bradken the latest company to be subject (albeit denied by the
company) to M&A rumour. Emeco and UGL have also been the subject of increased M&A speculation.
Offshore activity in acquiring onshore companies continued last week with 2 small deals announced.
Wood Group Wagners (www.woodgroupwagners.com), a Queensland based CSG oriented Engineering Services Firm
closed the sale of 45% to UK based Production Services Network. Value has not been disclosed at this time (but we are
keeping our eye out as usual).
Mancala (www.mancala.com.au), an underground Mining Services specialist (in particular around raise boring) sold itself in
a heavily structured share based transaction to Singaporean Sapphire Corporation, which is listed on the Singaporean
Second Board (Catalist). Deal value was disclosed at $15M which included a $2M loan from Sapphire to Mancala, $1.5m in
shares granted 3 months from completion, $4M following audited accounts being issued 31 Dec 2014 and $9.5M in shares
granted following audited accounts being issued 31 Dec 2015.
News Headlines and Key Sector Developments
Ticker News/Event
Ticker News/Event
ANG
Has further expanded operations in northern Chile through the
acquisition of competitor Servigrut for US$21M (payable in cash)
MND
Secured maintenance and infrastructure construction
contracts with a combined value of approximately $250M. The
contracts are with customers in the oil and gas sector in WA
and the water sector in QLD
CDD
Signed an agreement to acquire Haynes Whaley Associates, a
100 person structural engineering firm headquartered in Houston
Texas for US$22.25M. The acquisition is expected to contribute
approximately US$20M in revenue and US$4.6M in EBITDA over
the next twelve months
VMG
Has completed the sale of the VDM Construction (Eastern
Operations) business. Given the impact this transaction would
have within the notes of the VMG’s annual return, VMG has
decided to not lodge their accounts at this time, and as such
will remain in suspension until those matters are finalised
CLO
The Federal Court of Australia has given orders to CLO approving
the issue of the Scheme Booklet in relation to the proposed
acquisition by Murray & Roberts Pty Ltd
WDS
Won contract work with a total value exceeding $50M for
delivery in the current financial year. Two of the contracts are
with Santos (GLNG Project) and Vale (Carborough Downs
Coal Mine)
GCS
Awarded an additional $9M of formwork and concrete works to its
initial contract award for the construction of the Brookfield Place
Tower 2 project located in Perth’s CBD
WTP
Has been awarded a $25M contract from Australia Post to
deliver a major expansion at its Melbourne Parcel Facility in
Ardeer
Source: Capital IQ, Thomson Reuters, LCC research
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

2. WEEKLY
Australian Engineering & Mining Services
11 October 2013
Ticker Company Name
AJL
ASL
AAX
ANG
BLY
BKN
BYL
BOL
BSA
CDD
CGH
CLO
COF
DCG
DSB
DOW
EAL
EGN
EHL
EVZ
FWD
FGE
GCS
GNG
HDX
IMD
LEI
LCM
LYL
MLD
MAH
MYE
MIN
MCE
MND
NMS
NWH
OTC
PRG
RCR
RQL
SND
SDM
SSM
SWL
SXE
STS
SWK
TPP
TSE
UGL
VMG
WDS
WOR
WTP
AJ Lucas Group Limited
Ausdrill Limited
Ausenco Limited
Austin Engineering Limited
Boart Longyear Limited
Bradken Limited
Brierty Limited
Boom Logistics Limited
BSA Limited
Cardno Limited
Calibre Group Limited
Clough Limited
Coffey International Limited
Decmil Group Limited
DeltaSBD Limited
Downer EDI Limited
E&A Limited
Engenco Limited
Emeco Holdings Limited
EVZ Limited
Fleetwood Corporation Limited
Forge Group Limited
Global Construction Services Limited
GR Engineering Services Limited
Hughes Drilling Pty Limited
Imdex Limited
Leighton Holdings Limited
Logicamms Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
Mineral Resources Limited
Matrix Composites & Engineering
Monadelphous Group Limited
Neptune Marine Services Limited
NRW Holdings Limited
OTOC Limited
Programmed Maintenance Services
RCR Tomlinson Limited
Resource Equipment Limited
Saunders International Limited
Sedgman Limited
Service Stream Limited
Seymour Whyte Limited
Southern Cross Electrical Engineering
Structural Systems Limited
Swick Mining Services Limited
Tempo Australia Limited
Transfield Services Limited
UGL Limited
VDM Group Limited
WDS Limited
WorleyParsons Limited
Watpac Limited
WWW.LCC.ASIA
Market Cap Open Price Close Price Week High Week Low
(AUD Million)
(AUD)
(AUD)
(AUD)
(AUD)
353
433
203
260
193
1,012
43
82
32
916
149
1,135
58
391
20
2,026
73
50
131
11
215
429
89
102
71
168
5,999
131
183
442
169
77
2,120
66
1,600
83
376
20
333
481
47
71
164
48
105
181
28
76
8
648
1,278
10
114
5,467
151
1.32
1.40
1.62
3.17
0.44
5.80
0.38
0.19
0.14
6.10
0.48
1.46
0.21
2.29
0.53
4.50
0.67
0.14
0.25
0.05
3.57
4.89
0.50
0.69
0.35
0.83
16.95
1.87
4.79
2.55
0.13
1.00
10.81
0.68
17.85
0.05
1.35
0.10
2.76
3.49
0.18
0.89
0.76
0.17
1.40
1.17
0.43
0.36
0.05
1.14
7.74
0.01
0.76
23.10
0.82
1.32
1.39
1.65
3.55
0.43
5.98
0.40
0.18
0.14
6.38
0.47
1.46
0.23
2.32
0.44
4.66
0.65
0.16
0.23
0.05
3.55
4.98
0.52
0.68
0.34
0.80
17.79
1.88
4.69
2.56
0.14
1.02
11.40
0.70
17.33
0.05
1.35
0.11
2.82
3.53
0.19
0.91
0.74
0.17
1.35
1.12
0.44
0.35
0.05
1.27
7.83
0.01
0.79
22.15
0.82
1.38
1.42
1.67
3.58
0.45
6.15
0.40
0.19
0.14
6.43
0.48
1.46
0.23
2.32
0.53
4.66
0.70
0.16
0.25
0.05
3.62
5.12
0.52
0.69
0.36
0.85
17.84
1.90
4.79
2.59
0.14
1.02
11.47
0.74
17.94
0.05
1.38
0.11
2.83
3.66
0.19
0.93
0.76
0.18
1.40
1.21
0.44
0.37
0.06
1.27
7.87
0.00
0.80
23.57
0.83
1.30
1.28
1.54
3.17
0.41
5.53
0.38
0.18
0.13
5.81
0.46
1.45
0.20
2.03
0.44
4.27
0.65
0.12
0.22
0.05
3.36
4.69
0.48
0.65
0.33
0.78
16.64
1.71
4.60
2.49
0.12
0.95
10.81
0.67
16.74
0.05
1.23
0.10
2.70
3.11
0.18
0.87
0.73
0.16
1.33
1.10
0.43
0.34
0.05
1.14
7.46
0.00
0.75
21.51
0.78
Weekly Volume
% Change
—
▼
▲
▲
▼
▲
▲
▼
—
▲
▼
▲
▲
▲
▼
▲
▼
▲
▼
—
▼
▲
▲
▼
▼
▼
▲
▲
▼
▲
▲
▲
▲
▲
▼
—
—
▲
▲
▲
▲
▲
▼
—
▼
▼
▲
▼
—
▲
▲
—
▲
▼
—
0.0%
-1.1%
1.5%
12.0%
-3.4%
3.1%
5.3%
-5.4%
0.0%
4.6%
-2.1%
0.3%
7.1%
1.3%
-17.0%
3.6%
-3.0%
14.3%
-8.2%
0.0%
-0.6%
1.8%
4.0%
-0.7%
-2.9%
-3.6%
5.0%
0.5%
-2.1%
0.4%
8.0%
2.0%
5.5%
2.9%
-2.9%
0.0%
0.0%
5.0%
2.2%
1.1%
5.6%
2.2%
-3.3%
0.0%
-3.6%
-4.3%
2.3%
-2.8%
0.0%
11.0%
1.2%
0.0%
3.9%
-4.1%
0.0%
EV/
EV/
EBITDA
EBIT
NM
3.2x
5.0x
6.3x
3.8x
8.1x
2.2x
3.7x
4.1x
7.9x
3.1x
6.9x
7.4x
5.1x
2.4x
3.7x
6.7x
NM
3.2x
7.6x
6.3x
3.3x
3.7x
7.9x
5.2x
4.5x
3.6x
8.3x
4.9x
3.5x
1.4x
3.2x
6.5x
6.2x
5.9x
87.5x
2.8x
2.3x
6.4x
6.9x
3.5x
7.5x
2.5x
NM
4.2x
4.7x
2.6x
2.6x
NM
6.2x
16.8x
NM
4.4x
10.5x
2.0x
Trend
NM
5.8x
6.4x
7.6x
11.3x
12.0x
3.8x
8.0x
12.2x
9.6x
6.4x
7.2x
13.6x
5.7x
3.3x
6.6x
7.8x
NM
9.1x
10.4x
10.5x
4.1x
5.9x
8.7x
7.4x
6.0x
7.6x
8.9x
5.2x
5.3x
2.8x
4.6x
9.9x
82.1x
6.7x
NM
3.8x
3.2x
7.8x
9.3x
7.1x
8.0x
5.7x
NM
4.6x
5.8x
8.5x
4.9x
NM
12.1x
31.4x
NM
9.6x
11.8x
9.4x
So urce: Capital IQ, LCC research
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