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General Information

Transfield Services Limited
TSE
http://www.transfieldservices.com
Diversified Support Services
853
512

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$1.67 $1.70 $1.71 $1.66 $1.70 1501917 $0.03 ( 1.77% )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Hold
26/05/2015
2

Company Overview

Business Description
Transfield Services Limited (TSE) is a provider of Operations and maintenance, asset management, project and capital management outsourcing and infrastructure development services. TSE operates in Australia, New Zealand and the Americas (comprising the USA, Canada and Chile.TSE business units include Infrastructure; Defence, Social and Property; Resources and Industrial.
Strategy Analysis
TSE holds strong market share in Australia and NZ in outsourced asset maintenance. Contracts are usually of medium to long term duration across numerous industries such as power, rail, road, oil and gas, minerals, oil refineries, petrochemicals, water utilities and telecommunications. The willingness to establish alliance-style contracts allows the company to extend its skills to new areas. Solid cash flows and balance sheet support a strategy of growth via acquisition. Most customers are blue-chip and there are solid growth prospects. Transfield Services reported a net loss of $246.91m for the half-year ended 31 December 2012. Revenues from ordinary activities were $1.75bn, up 15% from the same period last year. Basic and Diluted EPS was (48.0) cents compared to 6.0 cents last year. Net operating cash flow was $30.65m compared to $25.64m last year. The interim dividend declared was 3.0 cents compared with 5.0 cents last year. A return to earnings growth for the group is expected in FY14, driven by: further overhead reduction flowing from the flatter ANZ organisation structure and integration of Easternwell in the ANZ Resources & Energy business; a program to identify and streamline contract overheads; a detailed operating model review to increase productivity and service level effectiveness; and optimisation of procurement and purchasing repetitive processes through automation or outsourcing.

Financial Summary

Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 90.5 17.7 6.6% 9.4 7.0 4.2% 5.0%
2015 F 84.9 16.6 17.0% 10.0 0.0 0.0% 0.0%
2014 A 72.6 14.2 86.8% 7.1 0.0 0.0% 0.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Brambles (BXB) $17,816M -0.1222 0.1640 0.0901 27.7859 23.8715 21.8991 2.37% 2.58% 2.53%
Downer EDI (DOW) $2,247M 0.0083 -0.0128 -0.0339 11.2174 11.3631 11.7620 4.46% 4.74% 4.84%
Recall Holdings (REC) $2,431M 0.0000 -0.1180 0.1232 22.5816 25.6029 22.7941 1.10% 2.72% 3.12%
Spotless Group Holdings (SPO) $2,482M 0.0000 1.8344 0.1237 48.6022 17.1472 15.2600 0.00% 0.00% 4.03%
Transfield Services (TSE) $869M 0.2435 -0.0597 0.0548 9.8204 10.4436 9.9007 0.00% 0.00% 4.39%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 1.02 10.20 1.11 0.00
Market 1.02 17.20 1.32 1.56
Sector 1.04 13.80 1.48 0.90

Directors

Name Position Start Date
Mr Graeme Peter Hunt Chief Executive Officer, Managing Director 07/05/2012
Mr Dean Anthony Pritchard Non-Executive Director 28/10/2013
Mr Geoffrey Kleemann Non-Executive Director 19/09/2014
Mr Douglas Norman Snedden Non-Executive Director 21/12/2009
Mr Roy McKelvie Non-Executive Director 31/08/2012
Ms Katherine (Kathy) Anne Hirschfeld Non-Executive Director 28/10/2013
Ms Diane Lee Smith-Gander Non-Executive Director, Non-Executive Chairman 22/10/2010

Management

Name Position
Ian Maxted Chief Development Officer and Chief Executive Defence, Social and Property - ANZ
Sandra Dodds Chief Executive - Infrastructure ANZ
Stuart Nevison Chief Executive - Operations, Maintenance and Well servicing
Joe Sofra Chief Executive - Resources and Industrials ANZ
Stephen Phillips Chief Executive Business Services
Kate Munnings Chief Executive Operations
Vince Nicoletti Chief Financial Officer
Angelique Nesbitt Company Secretary
Philip Wratt President and Chief Executive Americas

Substantial Shareholders

Holding Name
95,849,104 (18.70%) Allan Gray Australia Pty Ltd
57,849,887 (11.19%) Transfield Holdings Pty Ltd
25,712,678 (5.02%) Dimensional Entities

Calendar of Events

Date Event
25 February 2016 Report (Interim)
02 October 2015 Report (Annual)
28 August 2015 Report (Prelim)
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