Ann: Preliminary Final Report, page-2

All quiet on the SRG / GCS threads.

Results released for both companies and must say am impressed on both fronts. The merger is due to be approved by SRG shareholders on 22nd August, and implemented in early September.

Looking forward a number of opportunities - TBS Acquisition, SRG international expansion going well, JV with Taylor Bros in the US Dam market, possibility of the combined company being admitted to the ASX 200 (although still a way to go), 2019 first full year of ownership of Gallery Facades, synergies estimated for 4 million per year (one off costs of 1.4 million to realise these), and while challenges in some divisions, the overall impression I got from both results is WIH is at record levels for the year ahead and a combined pipeline of over 4 bn.

The combined company will have limited debt, and net cash of over 35 million, providing ample opportunity for further acquisitions (or I wouldn't be surprised to see a special dividend at half year).

Both companies trading on low PE multiples which in my mind do not give enough recognition of the above - SRG PE based on latest results of 12, and GCS of 10.

For me one of the biggest factors in investing in any company is the management, and this is where I believe both SRG and GCS and excelling. Both have a track record of growth, both have excellent shareholder communication (and I like the fact they used this results period as a test run for integration - using similar formats for the results, releasing both results on the same day - thereby ensuring systems, processes and people are aligned as much as possible). They have also announced a contract where both SRG and GCS will be delivering elements of it - and except this to create significant cross selling opportunities post merger.

The biggest risk to the above being realised is obvious. A lot has happened in the past 12 months for both companies (TBS Acquisition, purchase of minority interest in Gallery Facades), which when combined with the integration risk of both companies is significant. However given the above, and in my mind the low valuation attributed to both companies (let alone the merged company with corresponding synergies) it is a risk well worth taking.

You will always get SRG shareholders feeling they are being hard done by in the merger, GCS shareholders feeling the same, but I believe in a few years time both will be happy the merger went ahead ....

I remain a buyer (currently in SRG as at a conversion ratio of 2.479 SRG to GCS shares ... it is better value ... just!). FY dividend of 4.5cps to be paid.