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Business Description: Transfield Services Limited (TSE) is a provider of operations, maintenance, asset management and project management services. TSE operates in Australia, New Zealand, the United States, the United Arab Emirates, Qatar, South East Asia, India and Canada across industries, including mining and process, hydrocarbons, roads, rail and public transport, water, power, telecommunications, facilities management and defence. TSE provides services through its subsidiaries including APP, Broadspectrum, Easternwell, Hofincons, and ICD.
Strategy Analysis: TSE holds strong market share in Australia and NZ in outsourced asset maintenance. Contracts are usually of medium to long term duration across numerous industries such as power, rail, road, oil and gas, minerals, oil refineries, petrochemicals, water utilities and telecommunications. The willingness to establish alliance-style contracts allows the company to extend its skills to new areas. Solid cash flows and balance sheet support a strategy of growth via acquisition. Most customers are blue-chip and there are solid growth prospects.
Transfield Services reported a net loss of $246.91m for the half-year ended 31 December 2012. Revenues from ordinary activities were $1.75bn, up 15% from the same period last year. Basic and Diluted EPS was (48.0) cents compared to 6.0 cents last year. Net operating cash flow was $30.65m compared to $25.64m last year. The interim dividend declared was 3.0 cents compared with 5.0 cents last year. A return to earnings growth for the group is expected in FY14, driven by: further overhead reduction flowing from the flatter ANZ organisation structure and integration of Easternwell in the ANZ Resources & Energy business; a program to identify and streamline contract overheads; a detailed operating model review to increase productivity and service level effectiveness; and optimisation of procurement and purchasing repetitive processes through automation or outsourcing.
The Age 19/06/2013 |
The bullish sentiments on the sharemarket earlier this year have been challenged by a correction that has taken the All Ordinaries Index down about 10 per cent from its May highs. Many investors are now asking how deep the current correction is likely to be.
The Age 19/06/2013 |
Done well, value investing is a successful, safe way to invest. The logic of the approach - buying an asset for less than its underlying value - is irrefutable.
The Age 19/06/2013 |
Snowballing debts and no means to repay them ... going bankrupt is the last-ditch option for those in a financial hole too deep to climb out from.
The Age 19/06/2013 |
One of the weapons an individual has over institutions is time, and with real value emerging at the micro-cap end of the market, smaller stocks are an area worth holding on to.
The Age 19/06/2013 |
Spending 10 days in Japan gives one a good overview of what they call "Abenomics" and its impact, and that includes also being here for one of the biggest drops on the Japanese market in weeks.
The Age 19/06/2013 |
Lend Lease has moved to allay investors' concerns with the issue of a formal profit guidance of between $540 million and $550 million for the full year, despite the weakness in the construction sector.
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