Business Description:
Macmahon Holdings Limited (MAH) operates as an engineering contractor focused on delivering specialised services to clients in Australia, New Zealand and Malaysia. The company's core business includes diversified construction and mining services which span the marine, transport, water, rail and resource sectors.

Strategy Analysis:
MAH targets long-term contracts with large miners such as BHP and Rio Tinto. Few contracts are now undertaken on a fixed cost basis which has reduced earnings risk. MAH is increasingly targeting the burgeoning engineering construction market on the Australian east coast. MAH has formed an alliance with 19% shareholder engineering giant Leighton Holdings. Under a memorandum of understanding Leighton will promote MAH as a joint venture partner on large infrastructure and resources-related construction projects. This will allow MAH to potentially take on larger and technically more complex projects. Macmahon Holdings reported NPAT down 97.2% to $1.0m for the year ended 30 June 2011. Revenues from ordinary activities were $1.09bn, up 21.5% from last year. Diluted EPS was 0.14 cents compared to 5.08 cents last year. Net operating cash flow was $92.4m compared to $117.1m last year. No dividend was declared.