ugl wins huge new contract

Geez.... even I'm excited. Today UGL ann they have been awarded a30 month contract to maintain Sydney's rail fleet (Railcorp). It is repetitive work with big customer and UGL makes reasonable margins as it is a master of keeping costs down and doing 1st class job.

Even better is the potential to extend this contract for another 3 years via 3x 1 yr option contracts. this adds another $540m to the kitty making a total of $945m. It starts to add up after a while.

Remember UGL now has 9.3 Billion of work booked. Not bad for a company with mkt cap of 1Billion paying high divs and PE of 7.3.

Don't dream of selling. As the CEO noted in his address on Tuesday. 'We are close to signing several major contracts.' Not tenders... 'contracts'.