Lincoln Crowne & Company weekly research on the Australian engineering & construction sector for the week ended 26 July 2013

1. 26 July 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 market made solid gains throughout the week with the S&P / ASX100 ending the week up 1%. The Australian dollar
lost ground early in the week but recovered to end flat at US92 cents.
A profit downgrade by Ausenco saw large losses and renewed speculation about the state of mining services. Ausenco
CFO Craig Allen was reported in the press stating that clients “aren't making decisions at this point in time or spending
capital”. LCC sees this as a key factor hindering markets, one which is likely to remain in the short term. The market as a
whole is likely to remain uncertain until the reporting season (in August) completes.
Source: Capital IQ
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
AAX Has been affected by a number of contract specific issues, a
softer market and extraordinary costs associated with right-sizing
the business to maintain sustainable longer term margins. As a
result, the company’s unaudited first half 2013 performance is
expected to deliver revenues of $255M, underlying EBITDA
between $15 and $16M and underlying net profit after tax between
$6 and $7M. Full year results will be below the current market
consensus levels of revenues between $564M and $661M and
reported net profit after tax between $29M to $41M
CGH Brown Consulting, CGH’s wholly owned civil and urban
infrastructure services business, has expanded into Western
Australia with the acquisition of Perth based E-Tec
Consultants, a 21-person structural and civil engineering firm.
E-Tec’s forecast FY2013 revenue is approximately $4.4M, and
EBIT of approximately $1.0M
MCE Released its quarterly update. Production levels remained stable
at 112% of designed plant capacity throughout Q4 FY13. A
current order backlog of US$80M exists, which will support full
production until the end of Q2 FY14
WOR Vale has extended WOR’s services contract for the S11D
Project. Vale’s multi-billion dollar S11D Project is a world class
90M tonnes per annum iron ore processing facility located
approximately 1,940 km north east of Sao Paulo in Para State,
Brazil, in one of the world’s richest ore bodies
Source: Capital IQ, Thomson Reuters, LCC research
3800
4000
4200
4400
26 Jun 13 11 Jul 13 26 Jul 13
S&P/ASX 100 Index
0.900
0.920
0.940
26 Jun 13 11 Jul 13 26 Jul 13
AUD vs USD

2. 26 July 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
Page 2 / 2
Market Cap Open Price Close Price High Low Weekly Volume TEV/ TEV/
Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL 388 1.30 1.45 1.59 1.26 ▲ 11.5% NM NM
ASL 344 1.16 1.10 1.29 1.02 ▼ -5.2% 2.8x 4.8x
AAX 185 2.12 1.50 2.19 1.42 ▼ -29.5% 2.9x 3.4x
ANG 295 3.57 4.03 4.24 3.57 ▲ 12.9% 5.8x 6.7x
BLY 243 0.56 0.54 0.61 0.53 ▼ -3.6% 2.4x 3.8x
BKN 774 4.88 4.60 5.06 4.58 ▼ -5.7% 5.2x 6.8x
BYL 30 0.28 0.27 0.30 0.27 ▼ -1.8% 1.8x 2.9x
BOL 61 0.12 0.13 0.14 0.12 ▲ 8.3% 2.9x 5.1x
BSA 39 0.17 0.17 0.17 0.17 ▲ 3.0% 4.8x 12.2x
CDD 795 5.70 5.53 5.70 5.49 ▼ -3.0% 6.9x 8.1x
CGH 112 0.36 0.37 0.37 0.33 ▲ 1.4% 1.6x 2.5x
CLO 855 1.17 1.10 1.22 1.09 ▼ -5.6% 7.3x 7.5x
COF 32 0.14 0.13 0.14 0.12 ▼ -8.8% 3.2x 4.4x
DCG 353 2.10 2.10 2.12 2.02 0.0% 3.7x 4.0x
DSB 21 0.38 0.45 0.45 0.38 ▲ 17.1% 2.8x 3.6x
DOW 1625 3.93 3.75 3.96 3.67 ▼ -4.6% 3.4x 6.1x
EAL 62 0.52 0.55 0.56 0.50 ▲ 5.8% 7.3x 9.1x
EGN 47 0.15 0.15 0.16 0.15 0.0% NM NM
EHL 152 0.29 0.26 0.30 0.26 ▼ -8.8% 2.4x 5.2x
EVZ 11 0.05 0.05 0.05 0.05 ▼ -3.8% 7.8x 12.9x
FWD 231 4.20 3.81 4.33 3.79 ▼ -9.3% 3.8x 5.0x
FGE 367 4.90 4.26 5.00 4.23 ▼ -13.1% 2.7x 3.5x
GCS 78 0.44 0.46 0.50 0.44 ▲ 4.5% 3.4x 5.1x
GNG 74 0.46 0.49 0.50 0.46 ▲ 7.7% 4.4x 4.8x
HDX 48 0.26 0.27 0.27 0.23 ▲ 3.9% 3.9x 6.0x
IMD 159 0.80 0.76 0.90 0.73 ▼ -5.0% 3.1x 3.7x
LEI 5558 16.77 16.48 16.77 16.20 ▼ -1.7% 3.2x 6.6x
LCM 101 1.48 1.45 1.49 1.44 ▼ -2.0% 5.5x 5.7x
LYL 168 4.20 4.31 4.44 4.09 ▲ 2.6% 3.9x 4.1x
MLD 338 1.90 1.96 2.05 1.89 ▲ 3.2% 3.5x 5.3x
MAH 188 0.15 0.15 0.16 0.14 ▲ 3.4% 1.2x 2.1x
MYE 53 0.66 0.70 0.70 0.66 ▲ 6.1% 2.0x 2.6x
MIN 1767 9.40 9.50 9.75 9.20 ▲ 1.1% 7.3x 11.0x
MCE 86 0.87 0.91 0.94 0.86 ▲ 4.6% NM NM
MND 1464 17.10 16.10 17.40 15.90 ▼ -5.8% 5.7x 6.5x
NMS 65 0.04 0.04 0.04 0.04 ▼ -5.4% 66.1x NM
NWH 268 1.08 0.96 1.11 0.94 ▼ -11.1% 1.4x 1.8x
OTC 10 0.06 0.05 0.06 0.05 ▼ -3.6% 1.2x 1.7x
PRG 295 2.45 2.50 2.56 2.40 ▲ 2.0% 5.8x 7.1x
RCR 305 2.30 2.30 2.36 2.25 0.0% 4.4x 6.1x
RQL 37 0.17 0.15 0.17 0.15 ▼ -9.1% 2.7x 4.3x
SND 66 0.87 0.84 0.87 0.82 ▼ -3.4% 7.4x 8.0x
SDM 145 0.70 0.66 0.70 0.62 ▼ -5.7% 1.4x 2.0x
SWL 88 1.09 1.14 1.20 1.08 ▲ 4.1% 7.4x 9.3x
SXE 162 1.00 1.00 1.02 0.98 0.0% 5.1x 6.2x
STS 23 0.35 0.37 0.37 0.35 ▲ 5.7% 2.2x 5.3x
SWK 50 0.29 0.30 0.31 0.29 ▲ 5.3% 1.7x 3.3x
TPP 8 0.05 0.05 0.05 0.05 0.0% NM NM
TSE 451 0.89 0.88 0.98 0.86 ▼ -1.1% 5.1x 9.8x
UGL 1189 7.80 7.25 8.07 7.13 ▼ -7.1% 9.0x 12.3x
VMG 18 0.02 0.02 0.02 0.02 ▲ 5.6% NM NM
WDS 52 0.37 0.36 0.37 0.36 ▼ -1.4% 2.4x 5.4x
WOR 5407 22.38 21.91 22.54 21.54 ▼ -2.1% 10.4x 11.5x
WTP 100 0.58 0.55 0.59 0.55 ▼ -6.0% NM NM
Source: Capital IQ, LCC research
Logicamms Limited
Imdex Limited
Seymour Whyte Limited
UGL Limited
Leighton Holdings Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
WorleyParsons Limited
Sedgman Limited
VDM Group Limited
Watpac Limited
WDS Limited
Structural Systems Limited
Resource Equipment Limited
Saunders International Limited
Southern Cross Electrical Engineering
Matrix Composites & Engineering
OTOC Limited
RCR Tomlinson Limited
NRWHoldings Limited
Neptune Marine Services Limited
Monadelphous Group Limited
Mineral Resources Limited
Company Name
AJ Lucas Group Limited
Boart Longyear Limited
GR Engineering Services Limited
Calibre Group Limited
E&A Limited
Bradken Limited
DeltaSBD Limited
Boom Logistics Limited
EVZ Limited
Fleetwood Corporation Limited
Ausenco Limited
Ausdrill Limited
Downer EDI Limited
Hughes Drilling Pty Limited
Transfield Services Limited
Swick Mining Services 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
Tempo Australia Limited
Programmed Maintenance Services