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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 7/12/2013 |
The economy performed poorly in the September quarter, but that's OK. It was all Labor's fault, but now Labor is out. From here on it will be the Coalition's watch and everything will be much better. Or not. At least from here on Joe Hockey will be talking the economy up - as a treasurer should - not talking it down.
The Age 7/12/2013 |
Washington H. Soul Pattinson shareholders were told their dividends could be threatened and the company forced to sell assets if a restructuring put forward by dissident shareholders Perpetual and M.H. Carnegie wins support.
The Age 7/12/2013 |
Local shares had their worst week in six months as signs of improving economic conditions in the US made global investors nervous that the Federal Reserve might start withdrawing its stimulus as early as this month.
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