The company changed its monicker and code from Allied Technology (ATZ) to Longreach (LRG) on 16/2/07. Allied merged with Longreach via the issue of shares to Longreach shareholders on 22/11/06. Longreach then became a wholly-owned subsidiary of Allied. Allied then took the Longreach name. LRG is "principally involved in the design, integration, installation and maintenance of communications networks principally for the delivery of secure voice, data, video and web based communications services and solutions to Federal and State Government departments (including defence, DFAT and Homeland Security, USAF) and to prominent corporate clients across Australia".
The group also owns 25% of Startronics, one of Australia's largest contract electronics maufacturing facilities and Servicepoint who provide video conferencing. Executive options were granted on 6/12/06 with strike prices of 23-29c. Presumably the directors think the sp will arrive at a higher level than the strike price one day (current sp. 14c). The group has stated that it wishes to grow by acquistion.
The following figures were taken from the Chairmans' AGM address on 18/1/07. Presumably these accounts are pro-forma for the combined Longreach/Allied group, as the numbers bear little relation to the most recent final report for Allied for the YE June 2006, which was filed before the implementation of the merger (merger finalised on 22/11/06). Post-merger, there are 110m shares on issue. Sorry about all the dots, but this is the only way I could find to make everything line up.
.................2005......2006 (AUD m)
From the quarterly financial report filed on 31/1/07 I have taken the following numbers:
................Dec Qtr....YTD (6 months) (AUD m)
The group continues to win new contracts, most of them small, although I'm always a bit uncomfortable with companies which get all their revenue from one large contract- easy to account for, but a big problem if you lose the contract. For example:
3/10/06 Customer service contract from Australian govt. agency worth $300k/yr. The agency concerned approached LRG directly due to the sensitive nature of the work, and LRG has personnel who have already undergone security clearance (Warren Buffet's famed "competitive advantage").
14/12/06 Wins a navy (RAN) contract valued at $1.4m
13/12/06 Buys the technology business of ASX listed Redflex. Similar business to LGR - secure switches, air traffic control, secure communications networks etc.
From Oct 17th 2005 Sydney Morning Herald:
The full article is here:ASIO will double in size over the next five years as part of a strategy to equip the organisation for home-grown terrorism threats, the Prime Minister, John Howard, said yesterday. ASIO will recruit 900 spies over the next five years. It will also invest in new information technology systems to cope with the vast volume of intelligence now being developed and exchanged internationally.