AusGroup

AusGroup: Full year revenue of $302.4m (-48%) was in line with the street’s forecast, while net loss of A$11.9m (FY13 net profit: A$9.7m) came in above expectations. For 4QFY14 net profit surged 328% y/y to $2.2m, boosted by a one-off $5.8m gain mainly from disposal of a Singapore property. Revenue plunged 39% y/y to A$84.1m, due to reduced levels of activity in the mining-related sector, but rebounded 15% q/q. The significant downsizing of the business over 9MFY14 may have been completed, and AsuGroup is reaping the rewards of a shift away from construction services to the mining sector to the oil & gas sector and long-term asset maintenance contracts. Management notes acitivity levels are increasing in line with the order intake achieved over the last nine months. Work on hand stands A$375m. BVPS at A$0.303