Civmec

Civmec: Order book increased by $210m to $330m on recent contract wins. Projects include various site works for Rio Tinto and additional work awarded in the construction of a gold processing plant for La Mancha Resources. There are also scope growth to several existing contracts, including on and offsite work on existing LNG projects. In BT a article yesterday, Chairman James Fitzgerald also highlighted that prospects are good moving forward, citing the high capital expenditure base for oil and gas, increasing demand for iron ore and expected civil infrastructure works for the next few years - areas where Civmec specializes in. On concerns that orders will dry up, Chairman stresses that Civmec’s innovation, quality and timeliness within the budget will ensure a continual pipeline, even as the industries Civmec plays in constantly improves and expands. The future could also see Civmec expanding to SEA and Africa. On M&A opportunities, the company remains cautious. In FY June 13, net profit was up 19% to $36m, with a dividend of 0.7 cts/share A key competitive edge the company has is that main office is next door to its factory site by the coast of Henderson, Perth, lowering shipping cost of constructed infrastructure.