SRG was STS M/S sector

Have bought pre results. DYOR not a recco
M/S sector has been hot lately.Lots of good results coming out;some cashed up; takeovers ahead?
Provides engineering and contracting services to the construction and mining Industries

SRG Ltd. engages in the provision of providing engineering and contracting services.

It operates through the following segments: Construction, Mining, and Corporate segments.

The Construction segment offers construction services, post tensioning, concrete placement, and remedial operations.

The Mining segment includes services mining clients and production drilling.

The Corporate segment represents the entity that conducts transactions relating to finance, taxation, treasury, corporate secretarial, and strategic investments.

The company was founded in 1961 and is headquartered in South Melbourne, Australia.





"SRG(formally STS) SP keeps on improving basically doubling in the last 12 months to a $78 mill MC. But delving deeper SRG with a recent property sale and upcoming FY results will have in excess of $30mill in the kitty giving it a EV of $45mill. Have flagged a FY NPBT of $8-9 mill. Very much a diversified play in mining/infrastructure. The chairman is a former Leighton MD. But the big one for me is this contract when known as STS."


No Debt


Approx 63 mill shares on issue mkt cap re $78 mill


3 of Management in Top 10 holders.


$150 million contract over 5 years below. Umbrella deal adds $110 mill.






http://www.asx.com.au/asxpdf/2015122...k6v68hz7y1.pdf


Broker Report


2016-06 Hartleys Limited


SRG awarded $8M silo contract at Hanson quarry 4/07/16


MARKET UPDATE - Strong Profit Growth in FY16

Changes ticker and BOOM ...looks a great safer end of town holding .... be interesting how they invest their cash pile ...

Think the mining service sector will have some big winners in time . MND got hammered yesterday on their result .
I like TPP in this sector and am currently holding . Looking to add more in this space .

Yes ditto TPP.

PDF FY 16

PDF 53% increase in NPBT & 4c final div

PDF Annual report

S/P finished 7% up. Very happy to hold this for longer atp as work in hand already far exceeds last year plus the 5 year $150 mill contract with EVN and SRG is really just beginning its transition after laying foundations to adapt and change from STS. Stong niches including dams,a patented sure lock system and a huge Global pipeline, newish leadership,loads of cash and an EV of $60 mill.Im bullish.

Up 13% since results as SRG is being rerated following results.Nobody else saw the value here? Sa La Vie:D

$1.93 p/t
http://www.srglimited.com.au/images/...60830_FY16.pdf

Thanks for your great ideas and info JT. I've just had time for a glance and looks pretty good in terms of value, balance sheet and predictable revenue. Have you delved into management track record?

Like what i see in the Bios in the annual report but can't remember and record various company management.Still waiting for someone to release a regular online rating / feedback/ history/success etc publication of CEO's,CFo's ,Directors ,chairmen and management. Be an investors bible.

ps a friend spotted this one and i agreed but it took a while.

Has moved up faster then i expected re up 33% to $1.60 atm, Not complaining; thank you mkt ; and friend.:t_up:

Should have bough this instead of tpp

I have only just noticed that this thread is about a security I own.

Most recent purchase was at $1.33 on 8th Sept 2016.

They went ex-div to the tune of 4c on the 15th so more than happy with the $1.54 closing price yesterday.

I like the current fundamentals and love the uptrend.
That name change really did wonders.

Best Wishes
Paper Tiger

Been feeding in to the demand; sold some more @$1.85 today.I often sell too early.Trend still good.
Mkt cap only $118 million.

Chairmans address etc. pretty confident for 2017.Download Document 3.9MB

Just about everything I have ever owned has been pretty confident about the future.

But I hold SRG and is 'appy to continue to do so.

Best Wishes
Paper Tiger

It is always fascinating the things that companies do.

SRG AWARDED $24.4M CONTRACT FOR KEEPIT DAM UPGRADE PROJECT IN NSW

Best Wishes
Paper Tiger

Hopefully just what is needed to lift a flagging drifting s/p.
SRG - $100M Agreement and Work in Hand to Record $340M
PDF

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Originally Posted by Joshuatree

Been feeding in to the demand; sold some more @$1.85 today.I often sell too early.Trend still good.
Mkt cap only $118 million.

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Looks like you timed it well this time :)

See an announcement and a SP boost.

It sure needed that boost.

BW
PT

here you go PT. SP up re 7% to $1.37, and a contract.

Contract Award - Kuwait LNG Project

SRG FY17 - Investor Presentation
SRG secures JV Partner for North America Dams
"We are expecting FY18 to deliver a better revenue and profit outcome for our shareholders than FY17 weighted to the second half as we continue to focus on growth, expansion, acquisitions along with disciplined execution."

The mkt yawns!!

SRG Limited (ASX:SRG), a leading complex services company, is pleased to share itssecond newsletter for 2017.
Highlights:
• Record asset utilisation and new contracts in mining
• SRG awarded $22.8M JV contract for Margaret River Perimeter Road project with
WBHO Infrastructure
• Delivering various bridge projects for Main Roads Western Australia
• Agreement signed with Traylor Bros., Inc. to target dam strengthening work in the US
and Canada
• SRG awarded $26.5M international LNG tank project with Hyundai Engineering &
Construction Co., Ltd.
• Carbon fibre strengthening and our work in this area
SRG Managing Director, David Macgeorge said, “I am pleased to share SRG’s secondnewsletter for 2017, which showcases some of our recent financial highlights, project winsand developments throughout the business.”

SRG to merge with GCS (Global Construction Services) Announcement

Ommmm!

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Originally Posted by Snow Leopard

SRG to merge with GCS (Global Construction Services) Announcement

Ommmm!

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Good to see you're back again, always enjoy your posts. What do you make of the merger? Seems positive to me, but haven't been following company in much detail since last year (never bought in unfortunately).

Seen this from jimmy c ,Elles? Im holding still and guess the mkt will eventually warm to it upon seeing integration, synergies etc working..

"It's a merger of equals, meaning the merger ratios for the two companies is determined by last close price. Therefore, the deal would be prima facie fair if you believed that the market price of both companies was a fair valuation for each company.

GCS was forecast to do about $24m EBITDA in FY18 (excl. discontinued operation sale and pro forma for the additional 50% of Facades), had a pre announcement market cap of $168m, and about $60m of net cash and tax loss carry-forwards, implying an EV of about $110m. That means it was trading on about a 4.5x EV/EBITDA.

SRG was forecast to do about $25m EBITDA in FY18, had a pre announcement market cap of $154m and net debt of $6m meaning a $160m EV, implying it was trading on a 6.3x EV/EBITDA.

So, if you assume the two businesses were perfect substitutes for one another, you'd obviously want to own GCS as it's cheaper. But i don't think they are perfect substitutes - i think GCS is a slightly better business as it's more cash generative and takes less long-duration contract risk than SRG does, plus i also liked the idea of owning a WA-heavy business at the bottom of its earnings cycle versus SRG which is more east coast heavy.

So, from my perspective, i've traded a 4.5x EV/EBITDA business that might be a 5/10 quality business, for a 4/10 business trading at >6x EV/EBITDA. Doesn't make sense to me, even if you include the value of the purported synergies.

It's not a disastrous deal - it has strategic merit - but i think SRG holders are getting the better economic deal."

Great, thanks for sharing JT. It's gone up a lot already since I last looked at it, but they do seem to be doing well. Good luck with the merger, at least it sounds like you're getting the better deal once it goes through.

Quote:

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Originally Posted by Elles

Good to see you're back again, always enjoy your posts. What do you make of the merger? Seems positive to me, but haven't been following company in much detail since last year (never bought in unfortunately).

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I am not back yet, that will be in September.
I still have at least 2 planes, 3 trains, 2 boats and 11 hotels to go (at the time of writing).

Anyway in complete contrast to the piece that JT stole from somewhere I see it as a reasonably balanced merger but with GCS holders getting the slightly better deal.

The market prices shares on, amongst other things, future expectations.

As separate entities SRG has the better growth prospects which gave it a higher 'rating' by the market.
You will notice that the combined entities name appends Global on to SRG and that the most prominent reaction (downwards) has been in the SRG price/volume.

As far as I can see I would be swapping my higher potential growth (and also more volatile) SRG for a more staid conglomeration.

However I have at the present moment it time no particular desire to sell my SRG shares,
and more importantly I am off to see Superstar Rajini super-starring as Kaala today:
https://www.filmibeat.com/img/220x80...5947-16070.jpg

Anyone had a look at recently listed Johns Lyng Group (JLG)?

Quote:

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Originally Posted by Elles

Great, thanks for sharing JT. It's gone up a lot already since I last looked at it, but they do seem to be doing well. Good luck with the merger, at least it sounds like you're getting the better deal once it goes through.

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No worries mate.There are some great posters on H/C ,jimmy is one of them imo.

SRG has $222 millions in contracts in the last two months and we are hoping to hera of a big US dam contract soon. Lots of cash and plenty of growth here.
Mkt cap $163 mill
Underlying FY19 Guidance range (12 months SRG + 10 months GCS):

• – EBIT of $22m to $27m
  
• – EBITDA of $32m to $37m
  A fave of at least one small fund manager especially at current price .DYOR
  
  Euroz Conference Presentation
  
  

The chart looks strange with the gap between September and November last year. Were they reinstated on the ASX after the merger? Did that all work out well?

Yeah i think so. Momentum stopped/dropped hence creating an entrypoint as it fires up /integrates and getting heaps of contracts offers the proof and value opp imo DYOR

Thanks for the heads up on this one. Seems really fairly priced, but its hard to believe that there's going to be any growth. Hopefully im wrong and you guys get mega bucks. Hard to imagine buyers losing out at this price, but my interests lie elsewhere.

Up re 25% atp

Download Document 413.27KB

Download Document 15.87MB

Lots to like, two thirds recurring/annuity, 1 c div , huge order book, upgraded outlook and figs.

$110m Asset Services Term Contracts Secured

I make it about $660 million in contracts since oct last year.

https://hotcopper.com.au/documentemb...Rr%2BLFiGug%3D

Lovely

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Originally Posted by Joshuatree

https://hotcopper.com.au/documentemb...Rr%2BLFiGug%3D

Lovely

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A cracker..
Well done.