TEA - Tasmea Limited

[System]

The Tasmea Group operates in the Australian maintenance services industry. The Tasmea Group principally provides outsourced maintenance to fixed plant for essential asset owners within the following six industry sectors (Focus Industry Sectors):

• mining and resources;
• oil and gas;
• power and renewables;
• defence and infrastructure;
• telecommunications and retail; and
• waste and water.

The Tasmea Group provides essential shutdown, programmed maintenance, emergency breakdown and sustaining capital upgrade services principally to fixed plant and equipment for asset owners operating in essential Australian industries.

The Tasmea Group services a diversified blue-chip customer base operating across the mining and resources, oil and gas, power and renewables, defence and infrastructure, telecommunications and retail and waste and water industries. The Tasmea Group focuses on Australia’s remote regions where the majority of its customers are located and has a national footprint with operations in all mainland States and Territories.

Oxford Economics projects that in FY24, Tasmea’s total addressable market across the Focus Industry Sectors will be $21.4 billion and that the total addressable market is projected to grow at a compound annual growth rate (CAGR) of 1.1% between FY24 to FY28.

The projected growth in the total addressable market is based on Oxford Economics’ expectation of increased maintenance needs for existing plant across the mining and resources and oil and gas sectors and private and public infrastructure investment.

It is anticipated that TEA will list on the ASX during April 2024.

Tasmea Limited – Civil Mechanical Electrical Engineering & Maintenance | Mining | Industrial | Commercial

Providing essential civil, mechanical, electrical and drainage engineering services including maintenance, breakdown and shutdowns for the mining, industrial and commercial sectors. Our fifteen integrated subsidiaries can assist anywhere in Australia.

tasmea.com.au

 

[Dona Ferentes]

A real company

Listing date	29 April 2024 11:00 AM AEST ##
Company contact details	https://www.tasmea.com.au/ Ph: 61 8 8212 2929
Principal Activities	Maintenance, engineering and sustaining capital service provider
Issue Price	AUD 1.56
Issue Type	Ordinary Fully Paid Shares
Security code	TEA
Capital to be Raised	$59,000,000
Expected offer close date	10 April 2024
Underwriter	Morgans Corporate Limited, Unified Capital Partners Pty Ltd and Shaw and Partners Limited (Joint Lead Managers) Morgans Corporate Limited and Unified Capital Partners Pty Ltd (Joint Underwriters)

 

[Dona Ferentes]

in the bag, with a modest stag.

 

[Country Lad]

I looked at this a while ago and put it in the "just another engineering maintenance company", BUT share price has been consistently rising and now up 75% since listing in April.
Only 230 million shares with over half tightly held. Extract below from livewire

Cooper Rogers:

Yeah, well still yet to find out, I suppose that's a question we're always trying to answer, but the Tasmea tornado as we refer to it internally has been picking up pace since IPO in April. It's been going extremely well. It came out with a business objective to grow organically and also via acquisitions and the company's proven both of those things over the years. It’s acquired three companies extremely well and it's also growing organically around 15%. It had a great movement in the last month, so we're looking at its valuation from here. The next catalyst is upcoming AGMs, where we expect them to reiterate that organic growth.

The thing we really do like about the company is its long-term incentives management is incentivised to get EBIT up to $110 million and that's compared to the current EBIT of last year's EBIT in FY24 of $55 million. So, it's considerable growth. Management is really aligned with shareholders. We think it's one to watch

 

[Mr Flibble]

My pick for the Jan comp.

Highly incentivised management, good recurring income, and solid growth potential. TEA are going from strength to strength. Don't currently hold - I'm more dividend orientated than capital growth, but certainly one to keep an eye on.