Ann: Forge to acquire CTEC , page-6

Early thoughts:

Looks good as will almost run this company separately for 2 years so no integration risk, they can do well with FGE’s backing as we have seen by the RIO contract.

I think NPAT of 10 million or around that is achievable, however targets of NPBT of 8 million are low if so? EPS of 12c to FGE based on NPAT of 10 million.

Stretch targets for 2013 are up to 50% of NPBT up to 8.6 million so conceivably NPBT could be 17.20 million in their minds for 2013 which is NPAT of 12 million.

Appears cheap, low risk and builds revenue, profile and in turn market cap.

A very well structured deal IMO.