DUR - Duratec Limited

[System]

Duratec was founded in 2010 by the current executive Directors who assembled a team of specialist remediation engineers and contracting professionals with specific industry experience. They recognised asset protection, remediation and refurbishment as an underserviced and growing market.

Duratec is now a national market leader in:

• protecting and extending the life of a range of assets; and
• specialist asset refurbishment

Duratec is headquartered in Wangara, Western Australia. The Company has a national presence with 15 offices across all Australian states and territories, being Western Australia (Perth, Kalgoorlie, Karratha, Albany and Port Hedland), New South Wales (Sydney, Newcastle and Nowra), Queensland (Brisbane and Townsville), Victoria (Melbourne), South Australia (Adelaide), Northern Territory (Darwin), Australian Capital Territory (Canberra) and Tasmania (Launceston).

The Company intends to establish in the next 12 to 18 months an office and local team in New Zealand, in response to market demand (subject to any border and/or travel restrictions).

Duratec operates principally in Australia, but has also completed work in Malaysia, the Cocos Islands and Papua New Guinea.

It is anticipated that DUR will list on the ASX during October 2020.

Extend the Life of Your Assets | Duratec Australia

Our team of solutions-driven technical engineers specialises in the protection and remediation of steel and concrete. Contact Duratec Australia today.

www.duratec.com.au

 

[Tommy Shelby]

Bit of a shocker since listing - chart below. Metrics are quite cheap though

• P/E - 9.6
• Div yield 4.4%
• Market Cap/Free CF = 11
• Cash $41m vs market cap of $83m

The main items I can see are;

• COVID Disruptions - defence is the biggest source of rev and most bases shut down to essential items. That said, they spend money like its going out of fashion in normal times.
• Inflation - this is the concern going forward and looking into the future for a company like this. They are essentially a construction company focused on preventative maintenance and remediation. How well can they manage their costs to ensure they don't blow out? The price escalation in materials and the difficulty in even sourcing them due to SC issues has meant that builders who bid on jobs even 3-6 months ago are getting squeezed on margins. It wouldn't take much of a blow out to impact the bottom line.

In with a small position though weighing up the risks for nasty surprises in the future. Construction is a great way to go broke quick if you're not completely on top of it.

 

[Ann]

This youngster cropped up on my stock screen, it is old enough to have the 200dsma and it has just done a hop over the 200d MAs. It has a decent volume spike and the money flow is moving up with the spike. They do building remediation work, which could be a very good business with all the high-rises starting to show some signs of wear and tear or just plain shoddy building.
Anyway, not intending to buy in myself but thought it may be of interest for someone's watch list. I would be interested to hear if @Dona Ferentes has any thoughts.

 

[Dona Ferentes]

DUR now has a market cap of just under $100million. The company has been impacted by Covid as well as rising costs of materials. It managed to pay a ff dividend on lower EBIT numbers. PE is not stretched but workflow is dependent on winning new contracts..

Outlook
• Historically high work on hand and tendered works position, underpins strong growth prospects for H2FY22 and FY23
• Strong long term outlook, but short term challenges as COVID 19 continues to provide some uncertainty but sound mitigation plans in place

Return on Equity (%) ...	26.90
Return on Capital (%) ..	21.00

not one for me; as Tommy S points out, the jaws are tightening.

 

[Garpal Gumnut]

DUR now has a market cap of just under $100million. The company has been impacted by Covid as well as rising costs of materials. It managed to pay a ff dividend on lower EBIT numbers. PE is not stretched but workflow is dependent on winning new contracts..

Outlook
• Historically high work on hand and tendered works position, underpins strong growth prospects for H2FY22 and FY23
• Strong long term outlook, but short term challenges as COVID 19 continues to provide some uncertainty but sound mitigation plans in place

Return on Equity (%) ...	26.90
Return on Capital (%) ..	21.00

not one for me; as Tommy S points out, the jaws are tightening.

This youngster cropped up on my stock screen, it is old enough to have the 200dsma and it has just done a hop over the 200d MAs. It has a decent volume spike and the money flow is moving up with the spike. They do building remediation work, which could be a very good business with all the high-rises starting to show some signs of wear and tear or just plain shoddy building.
Anyway, not intending to buy in myself but thought it may be of interest for someone's watch list. I would be interested to hear if @Dona Ferentes has any thoughts.

View attachment 140214

I'd be usually interested but certainly in Queensland the building and remediation companies are not doing well.

gg

 

[galumay]

Had a look at it for a friend today, not for me, its basically gone backwards since listing - on increased revenue. How much is Covid and how much is structural decline is too hard for me.

 

[Dona Ferentes]

been a while .. results on 24 Feb

DURATEC PROVIDES FY24 GUIDANCE
from Nov .... regarding the financial results of the Company for the full year ended 30 June 2024. The guidance is based upon the earnings from year-to-date work delivered plus the Company’s forward forecast assumptions of the earnings from current works and new works yet to be won and expect to be delivered by the end of the financial year.

• Duratec’s revenue is expected to be in the range of $570m to $610m, delivering a forecast EBITDA of $45m to $52m.
• The Company reported revenue of $491.8m and EBITDA of $38.8m in FY23.
• Duratec’s current orderbook is currently $411.2m (excluding MSA’s / annuity style revenue), with tenders of $1.02bn and a pipeline, comprising tendered and identified opportunities, of $3.28bn.

Commenting on the guidance, Duratec’s Executive Director and General Manager, Chris Oates, said:
“Duratec continues works through its solid work-on-hand, in line with Duratec’s expectations. We are also well positioned to capitalise on our increased effort in work tendered and not yet awarded, which has risen to a record high $1.02bn and we have strong expectations for some significant project awards in coming months, as we consolidate on our performance to date this financial year”.

market cap $350 million

 

[Dona Ferentes]

and slipping today.

 

[Miner]

and slipping today.

ironically this company does not have a good name in labour market. With Alcoa and Nickel West Staff retrenchment, they will get cheaper labour on a short term. But they pay somewhat 25% less than companies of same sector. Wants to deal with conflict to win variation. Not a company Miner recommends. But what sharemaret sees different than what miner thinks