PioupiouDig away and post your thoughts, i am always interested...

Pioupiou

Dig away and post your thoughts, i am always interested in alternative views.

Agree this is not a steady as she goes stock with predictable performance on a year by year basis. It doesn't have the dependable 4-8% CAGR earnings growth of WOW, CSL, RHC, CCL etc but over a medium period it has the potential to outgrow all of these businesses.

I believe their competitive advantage is their capability at delivering complex projects on time and budget which is valuable enough to their core customers that they are happy to pay fees allowing lyl to achieve a solid NPAT margin of 9-10%. Paying more for an EPCM provider who has demonstrated time and again their competence is a small sum when the costs of a project not meeting specification or being delivered late is worth multiples of the EPCM fees.

I have held MND for some time and i see similarity in their ability to deliver results.

They also strike me as vey conservative managers, no egos at work or grandiose ideas to grow the business. They main growth thrust is geographic expansion to serve existing key customers.