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VDM GROUP LIMITED (VMG)

VDM GROUP LIMITED (VMG)

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General Information
Company Name: VDM Group Limited
Stock Code: VMG
Website: www.vdmgroup.com.au
GICS Sub-Industry: Construction & Engineering
Market Cap ($M): 49
Equiv. Shares (M): 934

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.053 $ 0.055 $ 0.057 $ 0.053 $ 0.055 3,215,560 $ -0.002  -3.636 %

Current Broker Consensus Recommendation more
Recommendation: Sell
Recommendation Date: 8th Sep 2009
12 Month Target Price (average): $0.5
Brokers Surveyed: 1

Company Overview

Business Description:
VDM Group Limited’s (VMG) is a design and construction company that delivers projects to the mining & resources, transport & civil infrastructure and urban development market sectors.

Strategy Analysis:
VMG's strategy is to build a leading engineering and contracting based business with ongoing potential for long-term profitability in diversified markets. The group is focused on being able to deliver a one-stop project management design and construction service to its clients. The business has a strategy of growth through diversity and strategic acquisitions. VMG has expanded its operations through several acquisitions, some of these include: Cape Crushing and Engineering Contractors Pty Ltd 75%; Barlow Gregg & Associates; Wylie & Skene Pty Ltd; Como Engineers; Malavoca, Bellero and Rocktec. The acquisition of Cape Crushing & Earthmoving led to the formation of the 'Resources & Infrastructure Services Division'. As at 31 Dec 08 EBIT contributions per division were approximately Resources and Infrastructure (50%), Consulting (31%) and Construction (19%).


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 13.6 1.0 -- 5.5 0.2 3.6 --
2012  F -12.6 -1.0 -- -- -- 0.0 --
2011  A -35.6 -7.0 -279.5 0.0 0.0 0.0 --
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Leighton (LEI) $6,020 M -0.5023 -0.3748 0.6118 8.8398 14.1387 8.7721 0.0672 0.0469 0.0749
Macmahon Holdings (MAH) $443 M -0.9716 52.8571 0.2334 428.5714 7.9576 6.4516 0.0000 0.0557 0.0597
Monadelphous (MND) $1,836 M 0.1195 0.1893 0.1663 19.3693 16.2864 13.9638 0.0459 0.0544 0.0615
UGL (UGL) $1,976 M 0.0916 0.0581 0.1441 12.4659 11.7810 10.2973 0.0589 0.0620 0.0680
VDM Group (VMG) $51 M -- -- -- -- -- 5.6701 0.0000 0.0000 0.0345

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
VMG -- -- 0.25 -- 0.08
Market 1.12 11.1 0.96 2.31 2.55
Sector 0.92 10.37 1.08 0.49 0.50

Directors
Name Position Start Date
Mr David Allan Thomas Coyne Chief Financial Officer,Company Secretary 07 May 2012
Mr Andrew Broad Managing Director 16 January 2012
Mr Michael Delaney Perrott Non-Executive Chairman,Non-Executive Director 02 July 2009
Mr Tim Crossley Non-Executive Director 15 November 2010
Mr Barry Frederick Nazer Non-Executive Director 01 October 2008
Mr Michael Bernard Fry Non-Executive Director 03 June 2011
Mr Richard Mickle Non-Executive Director 03 June 2011

Management
Name Position
L Troncone Chief Financial Officer
R Gonzales Chief Operating Officer
R Gregg Chief Operating Officer - VDM Consulting
Neil Barker Company Secretary
G Simpson Managing Director VDM Construction Pty Ltd

Substantial Shareholders
Holding Name
-- (--%) Not Disclosed in Annual Report

Calendar of Events
Date Event
27 February 2013 Report (Interim)
23 October 2012 Report (Annual)
28 September 2012 Report (Annual)
13 September 2012 Report (Prelim)
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