Business Description:
Transfield Services Limited (TSE) is an international provider of operations, maintenance, asset management and project management services. It operates in Australia, New Zealand, the United States, the United Arab Emirates, Qatar, South East Asia, India and Canada across diverse industries, including mining and process, hydrocarbons, roads, rail and public transport, water, power, telecommunications, facilities management and defence.

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 $19.73m for the year ended 30 June 2011, which was a result of several non-recurring items totalling $119.9m relating to the execution of strategic initiatives during the year. Revenues from ordinary activities were $2.76bn, up 5.4% from last year. Basic and Diluted EPS was (4.0) cents compared to 17.1 cents last year. Net operating cash flow was $82.21m compared to $225.04m last year. The final dividend declared was 9 cents, taking the full year dividend to 14 cents compared with 14 cents last year. The company is targeting an absolute growth rate of up to 5% in operational NPAT (pre-amortisation) in FY12. This is based on USD/AUD parity and is subject to no deterioration in economic conditions.