Business Description:
Ausdrill Limited (ASL) is an international drilling, contract mining, supply and logistics, and telecommunications services group with operations currently in Australia, Africa and the United Kingdom.

Strategy Analysis:
ASL strategy is to vertically integrate and become 'the complete service company´ to the mining industry in Australia and Africa. ASL has been extremely successful in acquiring businesses and integrating the operations, with the Brandrill operations now achieving similar margins to ASL. Participating in joint ventures has provided significant low-cost opportunities for the company to gain skills and expand operations to include coal seam gas drilling in Australia and underground gold mining in Africa. ASL has developed a strong niche, providing drill and blast contract services to the gold mining industry. But while project work is buoyant, contract renewal and extensions are becoming more difficult due to increasing competition for tenders. The appointment of former Leighton´s CEO Wal King to the Board will provide ASL with detailed experience and knowledge of the construction and contract mining industry. Ausdrill reported NPAT up 52% to $73.40m for the year ended 30 June 2011. Revenues from ordinary activities were $839.21m, up 33% from last year. The mining sector continued to experience unprecedented activity with a subsequent high demand for services. This together with the acquisition of Brandrill and additional services offered by the Company resulted in increased revenues. Diluted EPS was 26.92 cents compared to 23.53 cents last year. Net operating cash flow was $117.35m compared to $123.01m last year. The final dividend declared was 6.5 cents, taking the full year dividend to 12 cents compared with 11 cents last year. Looking ahead, the Company is planning for further expansion of its asset base through further capital expenditures in Australia and Africa as well as seeking out opportunities to expand its services.