Business Description:
UGL Limited (UGL) is a diversified group providing specialised engineering, asset management and property services in the areas of water, power, rail and other essential infrastructure across 45 countries worldwide.

Strategy Analysis:
UGL invests in and builds businesses that have low capital requirements, alliances with leading technology providers, and earnings streams secured by long-term contracts and that are relatively insulated from business cycles. The latter attribute is a function of providing, in many cases, services to essential infrastructure such as water treatment plants or power stations. The focus is on six core sectors: Rail, Water, Property, Utilities, Resources and Defence. UGL is utilising technology alliances to expand offshore in a measured fashion and through the acquisition of the property services companies PREMAS, headquartered in Singapore, Equis and UNICCO in the US, and DTZ in the UK. UGL reported NPAT up 9.7% to $158.51m for the year ended 30 June 2011. Revenues from ordinary activities were $4.29bn, up 2.4% from last year. Throughout the year, all of the company's businesses strengthened their operations, with over $4.0bn of new project wins, continued international expansion and successful project execution. Diluted EPS was 95.3 cents compared to 87.3 cents last year. Net operating cash flow was $150.64m compared to $229.45m last year. The final dividend declared was 38 cents, taking the full year dividend to 70 cents compared with 64 cents last year. The company expects continued growth in 2012. Tendering opportunities across all businesses are favourable, and the company has a strong forward order book and a large amount of work in the preferred tenderer stage.