Anyone follow this company? Theyve put on a stella performance since listing, accumulating a few acquisitions and landing plenty of large contracts, last announcement was for a 23m contract with Xtrata at Mt Isa.Business Description
VDM Group (VMG) is a multi-disciplined civil & structural engineering, project management, construction and contracting group, operating in Australia, Asia and Middle East. The company is structured into two divisions, consulting and construction, and operates as four engineering consultancy practices and two contracting companies as well as holding a 50% interest in a steel fabricator.
VMGs strategy is to build a leading engineering and contracting based business with ongoing potential for long-term profitability in diversified markets. The business has a strategy of growth through diversity. Equity positions are taken in other businesses where opportunities having downstream synergies are identified. The consulting division, VMG acquired Burchill VDM and its subsidiary Belleng VDM in Queensland, and EcOZ in Darwin. The acquisition provides a wide range, contruction and development opportunities to the company. In July 2006, VMG acquired 75% of Cape Crushing and Engineering Contractors Pty Ltd. This acquisition leads to the formation of a new division of the company namely the Resources & Infrastructure Services Division. VDM Group reported NPAT Up 81.4% to $5.67m for the year ended 30 June 2006. Revenues from ordinary activities were $79.87m, up 70.1% from last year. Diluted EPS was 15.28 cents compared to 11.75 cents last year. The net operating cash outflow was $4.73m compared to an inflow of $2.26m in the pcp. The final dividend declared was 3 cents, taking the full year dividend to 6 cents compared with 7 cents last year.
PATERSONS SECURITIES LIMITED, MERRILL LYNCH (INTERNATIONAL RESEARCH) show them as a Strong buy and a Hold.