AusGrp: (The Edge)

AusGrp: (The Edge) New CEO to focus on increasing margins through better project delivery. For FY11, grp managed to improve its fortunes as contracts frm Gas fields and iron ore mines continued to stream in. Margins however continued to be weighed done by projects secured at lower price during the GFC. For 9M12, grp has registed more then A$15m in earnings, even though rev was slightly better, as gross margins improved to 11.9% from 8.8%. As one of the largest contractors in Australia’s infrastructure sector, grp’s orderbook stood at abt A$443m last mth, . Co. is not worried abt current global slowdown, as AugGrp’s contracts are typically with long-term projects tt are at advanced stages of development, which has funds committed. Note also that grp is seeing lesser bidders in projects, as clients becomes more selective, and believe that grp will get its fair share of any bids. For now, grp is focused on increasing its margins through better project delivery. Once that is then, grp will start looking at how it can expand its offerings. Grp trades at just 6x earnings, vs peer Civmec at 34x.