Business Description:
DUET Group (DUE) is an owner of regulated energy utility infrastructure business in Australia. DUE is managed jointly by AMP Capital Investors Limited and Macquarie Capital Group Limited. DUE consists of two stapled registered managed investment schemes and an Australian public company.

Strategy Analysis:
DUE focuses on regulated and contracted utilities with stable and predictable revenue streams. The portfolio is diversified across energy sources and utility sectors within Australia. Historically, DUE looked to expand via acquisitions in OECD countries but no acquisitions are expected in the foreseeable future given more expensive debt post GFC and a poor track record. Current focus is on delivering organic growth commitments including smart electricity meters in Victoria. An equity raising and asset transactions mid 2011 reduced risk and simplified the portfolio to three majority stakes. Management is cleaning DUE up, making it more transparent and ensuring gearing and distributions are sustainable. DUET Group reported NPAT down 11% to $124.92m for the year ended 30 June 2011. Revenues from ordinary activities were $1.21bn, up 5% from last year. Basic and Diluted EPS was 1.44 cents compared to 4.88 cents last year. Net operating cash flow was $830.55m compared to $742.32m last year. The final dividend declared was 10 cents, taking the full year dividend to 20 cents, in line with 20 cents last year.