ALS Limited (ALQ)



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General Information
Company Name: ALS Limited
Stock Code: ALQ
Website: www.alsglobal.com
GICS Sub-Industry: Environmental & Facilities Services
Market Cap ($M): 3,190
Equiv. Shares (M): 398

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 7.500 $ 7.960 $ 8.030 $ 7.400 $ 8.020 4,511,070 $ -0.520  -6.484 %

Current Broker Consensus Recommendation more
Recommendation: Sell (4)
Recommendation Date: 25th Jul 2014
Brokers Surveyed: 4

Company Overview

Business Description:
ALS Limited (ALQ) is a global provider of testing and analytical laboratory services with global headquarters based in Brisbane, Australia. The Company operates four main testing service divisions namely Minerals, Life Sciences, Energy and Industrial across Africa, Asia, Australia, Europe and the Americas and a hospitality supplies business operating in Australia.

Strategy Analysis:
ALS will focus its attention on the Laboratory Services division where it has shown competitive advantage and a proven business model. Geographical expansion for ALS Laboratory Group is achieved through further acquisitions, opening of new laboratories and capacity expansions in Europe, Asia and North America, also diversifying into new analytical services market. This division will continue to be the key profit contributor. Reward Distribution is expected to see gains in sales post consolidation of its national distribution operations and rationalisation of warehouses. ALS reported NPAT up 32.5% to $135.5m for the half-year ended 30 September 2012. Revenues from ordinary activities were $813.6m, up 21.9% from the same period last year. All testing and inspection services divisions recorded strong increases in revenues and profit contributions compared with the pcp. In particular, significant growth in demand for services in ALS Energy, ALS Life Sciences and ALS Minerals saw these divisions post revenue gains of 28% or more for the half. Basic and Diluted EPS was 37.4 cents compared to 29.5 cents last year. Net operating cash flow was $107.3m compared to $83.0m last year. The interim dividend declared was 21.0 cents compared with 19.0 cents last year.


Financial Summary
Year to Mar NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 186.0 49.0 8.0 15.3 40.0 5.3 35.0
2015  F 172.2 45.4 6.3 16.5 39.0 5.2 25.0
2014  A 162.1 42.7 -38.1 21.1 39.0 4.3 50.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
ALS (ALQ) $3,158 M -0.3147 0.0503 0.1154 17.5315 16.6912 14.9642 0.0491 0.0505 0.0523
Tox Free Solutions (TOX) $436 M 0.3268 0.0094 0.1054 17.0860 16.9263 15.3124 0.0153 0.0187 0.0211
Transpacific Ind. (TPI) $1,722 M 0.0163 0.2271 0.1533 25.0000 20.3738 17.6661 0.0000 0.0000 0.0180

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ALQ 0.92 17.4 2.25 2.11 2.02
Market 0.99 16.7 1.26 2.13 1.66
Sector 0.83 13.2 1.32 3.47 0.69

Directors
Name Position Start Date
Mr Gregory Francis Kilmister Chief Executive Officer,Managing Director 01 September 2005
Dr John Francis Mulcahy Non-Executive Director 01 February 2012
Mr Grant Murdoch Non-Executive Director 01 September 2011
Mr Bruce Robert Brown Non-Executive Director (other) 01 January 1990
Mr Raymond (Ray) Gordon Hill Non-Executive Director (other) 28 October 2003
Dr Melvyn John Bridges Non-Executive Director (other) 29 September 2009
Mrs Nerolie P Withnall Non-Executive Director,Non-Executive Chairman 13 December 1994

Management
Name Position
Richard Stephens Chief Financial Officer
Timothy (Tim) Mullen Company Secretary
Paul McPhee Group General Manager, ALS Energy
Kristen Walsh Group General Manager, ALS Industrial
Raj Naran Group General Manager, ALS Life Sciences
Brian Williams Group General Manager, ALS Minerals
Andrew Ross Group General Manager, Reward Distribution

Substantial Shareholders
Holding Name
17,194,295 (5.00%) M&G Investment Funds
21,231,407 (6.24%) Bennelong Funds Management Ltd

Calendar of Events
Date Event
26 June 2015 Report (Annual)
26 May 2015 Report (Prelim)
26 November 2014 Report (Interim)
24 November 2014 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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