KEY POINTS:
MND upbeat about future
Australian engineering, construction, maintenance and industrial services engineering company Monadelphous (MND) has remained surprisingly upbeat in the face of an economic downturn.
MND recently reported a record net profit for 2007-08 of A$69.6 million ($84 million), up 15 per cent on the previous year's result.
MND specialises in complex and large-scale engineering construction projects and maintenance and industrial services for industry throughout Australia.
The company is exposed to a cyclical industry and is also subject to labour shortages within that industry. But it has a good reputation and the outlook is for modest but not spectacular profit growth. Current business activity and forward workload levels continue to run at a high level.
EBOS attractive
EBOS Group has a resilient business importing and supplying medical centres and hospitals with healthcare products.
While EBOS faces some margin pressure in New Zealand, it is shifting its trading base increasingly to Australia. It has reduced its debt from $27 million three years ago to just $2 million.
Its 2007-08 result gross profit was $33.6 million, a 78 per cent improvement over last year, and net profit was $16.7 million, up 61 per cent, although this was driven to a large extent by acquisitions. In the current financial year earnings are expected to grow by 10 per cent to 41c a share, putting it on a forecast p:e of just 10, well below its long-term average of around 13. It is offering a dividend of 24.5c, making its gross yield 8.5 per cent.
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