Rude health might be too strong a statement, but SKE just keeps motoring forwards.
Outlook
• The outlook for FY13 remains the same as the previous market update (1 May 2013). Trading conditions remain challenging in some business segments with growth in others: • Workforce Services: weakness in mining with continued price and margin pressure; weak employment conditions overall, with ‘pockets’ of strength e.g. telecommunications and infrastructure; some geographies e.g. Pilbara and Metropolitan NSW • Technical Professionals: reduced activity in mining and related engineering services, with growth in telecommunications and training • Engineering & Marine Services: continued growth supported by increased activity levels in oil & gas and maintenance services; the pipeline of oil and gas opportunities remains strong • Good progress on transformation and cost reduction expected to deliver at least $10 million in FY13; with further opportunity to reduce costs identified for FY14 • Expanding capability in attractive market segments: • Previously announced equity increase in the OMSA JV to 50% • Broadsword expected to deliver between $16 - $17 million EBITDA in FY14 • Well positioned to maintain a strong balance sheet to support dividends and invest for future growth
SKE Price at posting:
$2.39 Sentiment: Buy Disclosure: Held
