Forum Archive Index - December 2001

["Chris Slater" <chris.slater@xtra.co.nz>]

Hi Stock Man

 

No charts, but a comment from October's Market Analysis: 

"Abigroup lifted revenues 6.2% to $749.2 million for the year to June 30, with profits up 26.7% to $18,155,000 (38.1 cents per share). This result was aided by a $5.3 million tax credit compared with $4.5 million of tax paid last year. Pre-tax profits actually declined 31.8%. The final dividend will be cut to 5.0 cents, making a 20.0% lower 12.0 cents for the year. Construction margins "remain under significant pressure" with no improvement expected this year. Opportunities in the civil engineering market are expected to be "more buoyant" in 2003. Abigroup recently won a $40 million 3G infrastructure construction contract from Ericsson Australia for Hutchinson Orange. The company has also been short-listed for the $80 million Karuah by-pass and the $70 million Bega water treatment facility. A joint venture with Leighton Contractors, named Westlink, has lodged an application to develop the $1,400 million Western Sydney Orbital motorway as a BOOT (i.e. Build, Own, Operate, Transfer) project. Equally importantly, Abigroup's 15.0 million Hills Motorway units continue to appreciate in value and are now worth $79 million (165 cents per Abigroup share). Abigroup's move to re-enter the property syndicate business (see Market Analysis, September 2001) has fallen through after the company failed to exercise its option to purchase six properties for $48.1 million. The reason for not proceeding is not disclosed, but Abigroup may not have been able to finalise an underwriting agreement with Westpac."  A$ throughout.

 

MA still recommends ABG as a buy, though my 2½ year investment has returned -4.9% pa.  Divs are OK at 6.1% pa but this excludes local tax.

 

I hope this helps.

 

 

Regards

 

Chris Slater