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WDS LIMITED (WDS)

WDS LIMITED (WDS)

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General Information
Company Name: WDS Limited
Stock Code: WDS
Website: www.wdslimited.com.au
GICS Sub-Industry: Industrial Machinery
Market Cap ($M): 90
Equiv. Shares (M): 145

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.620 $ 0.620 $ 0.620 $ 0.620 $ 0.630 5,000 $ -0.010  -1.587 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 25th Aug 2011
12 Month Target Price (average): $0.835
Brokers Surveyed: 2

Company Overview

Business Description:
WDS Limited (WDS) is an Australian provider of the development, design, engineering, construction, fabrication and maintenance related services to the cross-section of energy, mining and infrastructure sectors in Australia. The Company delivers services through two divisions, being Energy & Infrastructure and Mining.

Strategy Analysis:
Following its poor performance in FY10 the company underwent a restructure and introduced initiatives to tighten up financial controls and reset project selection criteria. However, its core strategies remain largely unchanged. The company intends maintaining and growing its key exposure to the buoyant coal industry and plans to consolidate as a full service CSG provider in order to capture emerging opportunities in the CSG-LNG market. The company also plans to grow its existing pipeline construction and maintenance services. WDS plans to use its existing capabilities to expand into adjacent markets and new geographies. WDC reported NPAT of $5.5m for the year ended 30 June 2011. Revenues from ordinary activities were $376.07m, up 12% from last year. Diluted EPS was 3.74 cents compared to (5.60) cents last year. Net operating cash flow was $29.93m compared to $15.94m last year. The final dividend declared was 1 cents, taking the full year dividend to 2 cents compared with nil cents last year..


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 15.4 10.5 36.2 5.9 4.0 6.5 100.0
2012  F 11.3 7.7 105.3 8.1 3.0 4.8 100.0
2011  A 5.5 3.7 -- 16.6 2.0 3.2 100.0
Source: Morningstar analyst 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
Austin Engineering (ANG) $316 M 0.0860 0.3083 0.1795 14.9198 11.4040 9.6681 0.0263 0.0297 0.0343
Bradken (BKN) $1,301 M -0.1052 0.3789 0.1733 14.9217 10.8217 9.2230 0.0506 0.0576 0.0681
Boart Longyear (BLY) $1,637 M 4.8865 0.7749 0.2390 18.4992 10.4228 8.4123 0.0152 0.0294 0.0361
Hastie Group (HST) $74 M -0.4355 -0.8307 0.4240 0.7312 4.3200 3.0337 0.0000 0.0000 0.0059
WDS (WDS) $91 M -- 1.0267 0.3496 16.8449 8.3113 6.1584 0.0000 0.0468 0.0535

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
WDS 1.06 10.28 0.53 0.16 0.24
Market 0.80 12.5 1.38 1.16 1.88
Sector 1.03 11.6 1.02 0.53 0.53

Directors
Name Position Start Date
Mr Terrence (Terry) Chapman Chief Executive Officer,Managing Director 07 July 2010
Mr Phillip James McCarthy Director 31 August 2006
Michael Jones Executive Director 31 August 2006
Mr Jim McDonald Non-Executive Chairman 08 September 2006
Mr Ross Kenneth Rolfe Non-Executive Director 14 July 2008
Mr Gregory James Fletcher Non-Executive Director 09 July 2010
Mr John Harry Pegler Non-Executive Director 03 May 2011
Mr Michael Barton Non-Executive Director 01 February 2011

Management
Name Position
C. Hallinan Chief Executive WDS Energy & Infrastructure
W. Bull Chief Executive WDS Mining
A. Hayes Chief Financial Officer
Sharon Sills Company Secretary
Nicola Matthew Company Secretary

Substantial Shareholders
Holding Name
30,656,202 (21.28%) Pala Investment Holdings Limited

Calendar of Events
Date Event
22 October 2012 Report (Annual)
10 October 2012 Report (Annual)
22 August 2012 Report (Prelim)
22 February 2012 Report (Interim)
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