AE1 - Aerison Group

Established in Perth, Western Australia in 1988 and incorporated as a company in 1993, Aerison Pty Ltd, the principal trading entity of Aerison Group Ltd, has grown from a specialist environmental engineering company into a broad based engineering design and construction company self-performing multi-disciplined EPC, engineering and design, construction and maintenance services to various industries and clients across Australia.

The Company is recognised for its environmental services which includes studies, compliance testing and customised designed and built solutions that reduce the impact of industry on the environment. Its services are broadly categorised as follows:

(a) Engineering and Design
(b) Environmental
(c) Sustaining Capital, Maintenance and Shutdown
(d) Project
(e) Electrical and Control Infrastructure
(f) Power Generation

Aerison’s services are applicable to and are provided across the following industry sectors:

(a) Natural Resources

• Mining and minerals
• Oil and Gas

(b) Non-Process Infrastructure

• Materials Bulk Storage and Handling
• Road and Rail Tunnels
• Fuel facilities

(c) Utilities

• Water
• Power (including renewables)
• Gas

It is anticipated that AE1 will list on the ASX during June 2021.

FY2021

2 years in a row of positive reported profits - yet
2 years in a row of negative operating cashflows

Put in lease liabilities and capex costs and I see a difficult path to success for Aerison.

I've not got much time for publicly listed engineering companies as a general rule they are most concerned about winning contracts and growing forecast revenue over actual profitability. And right now in WA I doubt many contractors have any mechanism to claw back skyrocketing costs related to labor and general inflation. A risky sector.

They've got enough cash to get along for a while, but I don't like what I see.

Aerison Group (ASX:AE1) wins multiple contracts worth $100m​

Aerison said its “pipeline of opportunities” continued to track over $5 billion, with the company’s order book currently at around $370 million. This includes works under contract and a forward estimate of regular and ongoing works.

Live charts: https://uk.advfn.com/p.php?pid=staticchart&s=ASX^AE1&p=0&t=1

Listed for only two years and it looks like it might be the end of the line for AE1. Administrators have been appointed following an unresolved $47.5 million dispute with Roy Hill Iron Ore Pty Ltd.