Business Description:
AJ Lucas Group Limited (AJL) is a diversified infrastructure, construction and mining services group which specialises in providing services to the energy, mining and infrastructure sectors. AJL has a client base principally comprising major corporations, state and local governments. AJL comprises three divisions: Drilling; Building, Construction & Infrastructure; and Energy Investments.

Strategy Analysis:
The AJL strategy focuses on improving the quality and maintainability of earnings streams, increasing involvement in the growing Asian economies and leveraging the Company's engineering expertise into sustainable services businesses. Operations are in sectors where high barriers to entry exist with opportunities for growth. AJL aims to be one of Australia's leading engineering services companies supplying specialist infrastructure and construction solutions to Australia's water & waste water, oil & gas and resources sectors. In order to achieve its business strategy objectives, they will relocate the drilling division to a new premises acquired in Wyong in the lower Hunter Valley. There will be an expansion of the range of services offered after a review of operations, structure and systems to assist with further planned organic growth. The company will continue to invest in water and infrastructure opportunities along with other one-off ventures which will provide alternative ways to add value. Internationally, AJL continues to investigate overseas segments in China and the Middle East to take advantage of developments and to expand entrepreneurial investments. AJ Lucas reported a net loss of 17.87m down for the half-year ended 31 December 2010. Revenues from ordinary activities were $229m, up 38.3% from the same period last year. Diluted EPS was (27.2) cents compared to 8.8 cents last year. Net operating cash flow was $25.66m compared to $(1.87)m last year. There was no interim dividend declared.