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UGL - UGL Limited

Discussion in 'Stocks Q-Z' started by 3 veiws of a secret, May 12, 2006.

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  1. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    I have held this share for almost 4 years, constantly topped up along the way and I'm beginning to think is it time to bank soon......
    My Qu:
    Does anybody out there have this share in their portfolio???

    Keen to read your thoughts on this share. Life is good with UGL.
     
  2. Sainter

    Sainter

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    Re: UGL - United Group

    Howdy,
    Personally I think UGL has a bit more to go. I first bought in '99 and have been richly rewarded since. I did think at the start of this FY that maybe it was time to take some profit, so after the SPP earlier this year I did sell some-the price had jumped to $10.13! Fortunately for me it was only ~15% of my holdings. I think that the imminent NSW train deal, which supposedly has UGL with the inside running, coupled with the ongoing commodities boom, plus the infrastructure spending announced in the budget the other week should see UGL good for at least another year or so.

    Cheers!
     
  3. GreatPig

    GreatPig Pigs In Space

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    Re: UGL - United Group

    I've only been holding it since mid-January this year but the 24.5% gain I've got on it already is very nice.

    No idea where they're going, or even what they really do, but while they're going there I'll be along for the ride :D.

    GP
     
  4. michael_selway

    michael_selway Coal & Phosphate, thats it!

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    Re: UGL - United Group

    yeah I agree WOR, UGL, DOW, these ones should still be good for thsi year atleast, next yr possibly, but after that cant say, might be a turn around

    GP nice, but playing dangerously imo, if you buy not knowing what they really do etc

    thx

    MS
     
  5. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    Re: UGL - United Group

    Well ,what is being explained to me is nothing new (with utmost respect to other opinions). I did a search for UGL & was amazed nothing found on ASF!.
    I was very fortunate to listen /heed my old friend and stockbrocker from "Potters" the only thing is that I regret not topping up at 87 CENTS or even 94 CENTS!!!!!! after buying a slice @ 3.25.
    This once WA company has excelled itself beyong my widest imagination,and I have gut feel it is trying to catch WES share price of today ,but this is wishful thinking. But when GE helped in the purchase in Gonnigan's,this share was going to be in my pocket for the long haul....
    Richard Leupen ( schpelling) and his team ,if making the Alstom transition a success ,will make me sit up and listen where he wants this UGL to stride forward next .I have still to see when they loose their first contract/tender etc etc ,but my wife begs me to buy some for her. :swear:
    Needless to say I like this company why not when I'm 100K + up on it,but one day I will need to sell :banghead:
     
  6. kennas

    kennas Searching

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    Re: UGL - United Group

    It will need a couple of big acquisitions if it's going to catch WES's sp. MAH is an easy target and would compliment it's operations. Or merger with WOR or DOW maybe. There's a bit of room for consolidation in the sector I reckon, which so far hasn't really occurred, which in this environment is a little odd. They are all screaming about skilled labour, equipment etc...Maybe we'll see that action soon enough.
     
  7. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    Re: UGL - United Group

    I like the direction UGL took when they bought Premas(?) in Singapore, cannot but feel UGL is out to impress, in many ways then one . Consolidation in Oztralia sure, but! I get the impression Asia is the next cosy target......time will tell :cautious:
    But seriously this stock has some stamina in its legs ,I just hope it does'nt get cramp too soon!
     
  8. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    Re: UGL - United Group

    Ok I said Asia ,but now America also? ........
    I'm a happy chappy,this share is on steriods watch out !....
     
  9. michael_selway

    michael_selway Coal & Phosphate, thats it!

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    Re: UGL - United Group

    WOR - Earnings and Dividends Forecast (cents per share)
    2005 2006 2007 2008
    EPS 31.2 67.0 86.7 103.3
    DPS 20.0 40.5 51.8 62.0

    UGL - Earnings and Dividends Forecast (cents per share)
    2005 2006 2007 2008
    EPS 40.4 61.4 74.3 86.1
    DPS 30.0 43.0 51.0 58.4

    DOW - Earnings and Dividends Forecast (cents per share)
    2005 2006 2007 2008
    EPS 32.8 48.3 55.4 61.4
    DPS 18.0 25.0 28.0 31.0

    MAH - Earnings and Dividends Forecast (cents per share)
    2005 2006 2007 2008
    EPS 5.0 5.8 6.7 8.0
    DPS 1.0 1.5 2.5 2.5

    thx

    MS
     
  10. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    Re: UGL - United Group

    In the last 15 mins somebody has just bought up UGL shares at crazy /frenzy prices ,needless to say it makes my portfolio glow in the dark.
     
  11. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    Re: UGL - United Group

    Funny how the market caught wind of the info/announcement ,as I struggled to grasp the cause -Still I'm happy as a pumpkin :) Tell e'm Little Richard Leupen.......:D

    United Group secures over $220 million in new Water projects
    Leading engineering and services company United Group Limited (ASX: UGL) today announced that its
    Infrastructure business has secured over $220 million of new water and wastewater projects throughout
    Australia. The new projects also signal a strengthening of United Group’s partnership with GE as it
    expands its operations in the essential infrastructure sectors.
    Recent projects wins include:
    • Nomination of preferred tenderer status for the delivery of the Western Sydney Recycled Water
    Initiative – Replacement Flows Project as part of the Deerubbin WaterFutures Consortium,
    which consists of United Group Infrastructure, GE Water and the McConnell Dowell
    Constructors. The project will see wastewater from St Marys, Penrith and Quakers Hill sewage
    treatment plants being treated using GE’s Zeeweed and reverse osmosis technology, to
    provide potable replacement high quality water for environmental flows.
    • In joint venture with GE Water, construction of nine water treatment plants for country
    townships along the Murray River for SA Water.
    • Design, construction and commissioning of works associated with North Head STP PARR
    Improvement Project for Sydney Water in an alliance with major partner John Holland,
    designers Patterson Britton and MWH Australia, and Manidis Roberts for the environment.
    • Increased scope of works associated with the Gibson Island Advance Water Treatment Plant,
    as part of the Western Corridor Recycled Water Project, announced in March 2007. The
    project will now have an increased total net output from 35ML/day to 50ML/day of recycled
    water.
    United Group’s Managing Director and CEO Richard Leupen said these new projects reflect the
    continued strength of spending in essential infrastructure markets in Australia, as well as the fact that
    United Group’s risk is well spread across a broad number of projects it has in the water sector.
    “The spending on infrastructure such as water, power and transport in Australia is continuing, and State
    Governments remain committed to improving essential services in suburban and regional areas. United
    Group is establishing a leading position in the water sector in all major states as reflected by these new
    projects in New South Wales, Queensland and South Australia.
    “Our partnership with GE Water is particularly pleasing and offers the Group significant opportunities to
    expand its presence in the water sector both in Australia and internationally. GE has indicated that
    infrastructure remains one of its major growth channels going forward, and United Group is well placed
    to partner with GE Water as it pursues a broad range of opportunities in Australia and throughout Asia.
    “United Group is currently involved in over 20 projects undertaking engineering, construction and
    maintenance works in the water sector both in Australia and in South East Asia so we are not reliant on
    any one major project. The pipeline of bidding opportunities in both markets is very encouraging” Mr
    Leupen said.
     
  12. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    Re: UGL - United Group

    Trading halt again....it's like the train I use to commute on from Kent to Charing Cross stops at every station ........
    Here's the announcement ......


    ASX RELEASE
    (Not for distribution in the United States or to US persons)
    11 July 2007
    ABN 85 009 180 287
    United Group Acquires UNICCO for A$477 million
    United Group Limited (“United Group”) acquires US-based integrated facilities
    management (FM) services company, UNICCO Service Company (“UNICCO”) for A$477
    million (US$408 million)1
    Attractive acquisition price – 9.8x FY08E UNICCO EBITDA
    UNICCO is an integrated provider of FM, operations and maintenance, janitorial,
    engineering, administration, and landscaping and grounds maintenance services
    Key acquisition in developing United Group’s strategy to establish a leading global
    provider of property services, including corporate real estate (CRE) and FM services
    Strengthens United Group’s presence in the US and Canada and provides a strategic
    platform for continued growth
    Acquisition to be funded through
    ”” A$231 million institutional equity placement2 in conjunction with a share purchase plan
    ”” Conditional institutional equity placement of an additional A$50 million subject to
    shareholder approval
    ”” Issue of ~A$70m to vendor
    ”” New and existing debt facilities
    Mr. Steve Kletjian, UNICCO’s majority equity holder will become a major shareholder of
    United Group and will provide advisory services to United Group’s Managing Director and
    CEO and to the United Group Board
    Additional payment of A$33 million to receive potential US tax benefits valued at
    approximately A$85 million to be realised over 15 years through ongoing tax benefits
    Acquisition is expected to be around 5% EPS accretive in the first year of the acquisition,
    before the impact of synergies
    United Group has entered an agreement to acquire US integrated facilities services
    company UNICCO for A$477 million, with A$407 million payable in cash and the remainder
    payable in United Group shares to be issued to the vendors.
    UNICCO is an excellent fit with United Group and is a key step in United Group’s strategy to
    create a leading global provider of CRE and FM services. Completion is expected in
    September 2007, subject to satisfaction of customary consents, approvals and conditions.
    Founded in 1949, and headquartered in Newton (Boston), Massachusetts, UNICCO is a
    leading provider of integrated FM services in the US, servicing more than 1,000 customers
    at more than 5,000 sites. UNICCO has approximately 18,000 employees who provide FM,
    operations and maintenance, janitorial, engineering, administration, and landscaping and
    grounds maintenance services. UNICCO has a 95% customer retention rate and its top
    fifteen customers by revenue have utilised its services for an average of twelve years.
    1 AUD / USD exchange rate of 0.855 assumed throughout this announcement
    2 Based on underwritten floor price of A$16.30 per share
    Page 2 of 3
    UNICCO is expected to deliver FY08 revenue of US$770 million (A$900 million) and
    EBITDA of US$41.5 million (A$48.5 million).
    UNICCO’s Chairman and majority equity holder, Mr. Steve Kletjian, will retire from full time
    employment upon completion of the acquisition. The existing senior management led by Mr.
    Louis Lanzillo and Mr. George Keches remain committed to the business and will continue to
    drive its future growth. Mr. Kletjian will continue to provide advisory services to United
    Group's Managing Director and CEO and to the United Group Board.
    United Group’s Managing Director and CEO Mr. Richard Leupen said: “This is a major step
    in United Group’s growth and a unique opportunity for the Group to secure a leading
    presence in the growing US FM market. The acquisition fits with our strategy of growing our
    global property services model and partnering with leading blue chip customers and
    government departments.
    “United Group has provided FM services to blue chip customers and government
    departments for more than ten years and it is a market we understand very well. UNICCO is
    an excellent fit with United Group’s existing property services and FM operations.
    Customers are demanding CRE and FM services and we can now provide this in the United
    States with UGL Equis and UNICCO as well as in other international markets.
    “UNICCO has a highly regarded brand name and impressive long standing customer base.
    The US property services market is continuing to expand and United Group will now be a
    larger, integral part of this growth.
    “UNICCO positions United Group’s Services business as a leading property services
    business with more than 21,000 staff across 13 countries and annual revenue of around
    A$1.3 billion.
    “This is our fourth acquisition in property services. United Group has a track record of
    integrating acquisitions and maximising shareholder value. I am delighted that UNICCO’s
    management team has committed to stay with the business and work with United Group to
    achieve our growth objectives. We are now another step closer to becoming one of the
    world’s leading CRE and FM services companies.”
    Financing
    Equity funding will be raised through a fully underwritten institutional placement of A$281
    million. Of the institutional placement, A$50 million will be conditional upon shareholder
    approval at an EGM of United Group, expected to take place in August 2007. Terms of the
    acquisition include the issue of ~A$70m of United Group shares to the vendors of UNICCO.
    Mr. Richard Leupen, Managing Director and CEO of United Group, intends to take an
    allocation of A$3 million under the placement, conditional upon shareholder approval at the
    forthcoming EGM.
    In addition, a share purchase plan will be offered, under which eligible United Group
    shareholders are each entitled to subscribe to shares up to the value of A$5,000. Further
    details of the Share Purchase Plan will be mailed to shareholders shortly.
    The balance of the funding is expected to be provided by senior debt facilities.
    Outlook
    United Group expects another strong result in FY07, in which NPAT is expected to exceed
    A$90 million, subject to the final audit review. Historical strong growth will continue in FY08,
    with revenues expected to be around A$4 billion.
    - End -
    Page 3 of 3
    Goldman Sachs JBWere acted as financial adviser to United Group for the acquisition and
    as Underwriter and Sole Lead Manager and Bookrunner of the placement.
    NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS
    For further information, please contact:
    Richard Leupen, Managing Director & CEO, United Group Limited: +612 9492 8803
    Teresa Aruego Easter – Group Manager Corporate Affairs: +612 9492 8842 or +61 401 147 822
    United Group (ASX - UGL) is a diversified services company specialising in maintenance, facilities management,
    manufacturing, fabrication, engineering, construction and business process outsourcing. The group consists of four businesses
    each with specific complementary services:
    United Group Infrastructure is a multi-service business offering construction, engineering, operational and maintenance
    services to the water, power, communications, road & rail transport and defence industries
    United Group Rail is Australia’s foremost rail and rolling stock company offering services such as; engineering and
    manufacturing, refurbishment and remanufacture, maintenance services and spare parts
    United Group Resources is a long term solution provider of multi-discipline services to clients in the resources industry
    United Group Services is a premier global provider of outsourcing services. Services include corporate real estate, facilities
    management, project management, finance and accounting, procurement, human resource management and learning
    This announcement does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold
    in the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S.
    Securities Act of 1933, as amended (the "Securities Act")) unless they are registered under the Securities Act or an exemption
    from registration is available.
    This announcement includes forward-looking statements regarding future events and the future financial performance of United
    Group, including statements that the transaction is expected to be accretive. Any forward-looking statements involve subjective
    judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the
    control of, and are unknown to, United Group and its officers, employees, agents or associates. Actual results, performance or
    achievements may vary materially from any forward-looking statements and the assumptions on which those statements are
    based. Given these uncertainties, you are cautioned that this announcement should not be relied upon as a recommendation
    or forecast by United Group. United Group undertakes no obligation to revise the forward-looking statements included in this
    presentation to reflect any future events or circumstances. In addition, United Group's results are reported under Australian
    International Financial Reporting Standards, or A-IFRS. This announcement includes references to EBITDA. These references
    to EBITDA should not be viewed in isolation or considered as an indication of, or alternative to, measures reported in
    accordance with A-IFRS or as an indicator of operating performance or as an alternative to cash flow as a measure of liquidity.
     
  13. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    Re: UGL - United Group

    Well with the recent share purchase plan of $17 passed me by today @ 1700hrs ,I wonder who bought in when the days share price hovered $15.55>$15.85 ?
    Seems UGL might have to borrow some dollars to pay for it's recent purchase...will it have a knock on effect to earnings?:confused:
     
  14. Lachlan6

    Lachlan6

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    Re: UGL - United Group

    Another example of a quality stock getting hit with the market correction. I am going to enter (UGL), it may have a little more downside back to strong area of support at around $15.00, but will wait for a reversal confirmation then I will jump in. Estimated 2009 EPS of 110. Its almost (maybe) time to go shopping :)
     

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  15. kennas

    kennas Searching

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    Re: UGL - United Group

    Obviously these numbers were not as good as the market expected.

    Stock was off 20% at one point... :confused:
     
  16. pepperoni

    pepperoni

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    Re: UGL - United Group

    From $22 to under $12. If you look at the performance of each sector and ignore the $20m ppp write off last year these guys are going nowhere, even with many $100m spent on service company aquisitions. Seems the market may have woken up to this company's loopy strategies and management. Subprime issues in the US will decimate property services there mid term.

    Its going to be all downhill from her and only a matter of when the market works it out.

    I wouldnt be surprised if they announce a new ceo before the end of the financial year.
     
  17. Ferret

    Ferret

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    Re: UGL - United Group

    I can't see how this result deserved a 25% fall in share price. Just seems to show how nervous the market is at the moment. Even the smallest failure to live up to expectations this reporting season is going to be severely punished.

    I'm going to look at some analyst's reports tomorrow and see if I've missed something about the result. If I haven't, I'll be looking to buy on the first sign of a bounce.

    Ferret
     
  18. reece55

    reece55

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    Re: UGL - United Group

    Ferret
    Look deeper into the result and think about UGL's valuation metrics - this is an entity with a high valuation (well, was....) that has delivered a result that shows slowing in profits. The expectations when a stock is at 20 times forward earnings is that it must continue to have 15 - 20% eps growth in perpetuity to maintain it's valuation..... The reality is that if firms profits rose at this rate in perpetuity, we would have about 12% inflation. UGL isn't alone.... look at TPI, TSE BKN and WOR....... sector analysis suggests that the boom times for engineering firms are not as bright going forward....

    Cheers
     
  19. michael_selway

    michael_selway Coal & Phosphate, thats it!

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    Re: UGL - United Group

    There may be exceptiosn like MND & AAX?

    thx

    MS

    UGL - Earnings and Dividends Forecast (cents per share)
    2007 2008 2009 2010
    EPS 79.3 92.0 106.5 120.1
    DPS 48.0 58.0 68.0 76.0


     
  20. Miner

    Miner

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    Re: UGL - United Group



    Hi MS

    While searching for UGL and MAH I got your posting from 2006.
    Good one and what do you think the numbers are in 2008 since you predicted or extracted from some forecast and what are the current readings

    I think UGL is a good company or better one since then and so is MAH, WOR

    Not sure on DOW at current business perspective


    This is not a criticism but a query as you often try to provide good information

    I do not know why this 100 character some times make the message unnecessary longer than required, Very inefficient burden at some times
    Regards
     
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