Following last week’s report ‘Resources Capex and Mining Services’, we now turn our attention to one of the potential companies that may benefit from the resources capex currently occurring in Australia – Forge Group Limited (ASX:FGE).

FGE has been a regular feature in both the MyClime forum and Clime’s portfolios. With a recently announced acquisition and a new CEO at the helm, we take the opportunity to refresh our view on this integrated West Australian contractor.

Forge Group Limtied (ASX:FGE) provides a range of diversified services to the resources, building and infrastructure industries through the following entities: Cimeco, Abesque, Webb and the recently acquired CTEC. The group began as AI Construction, a subsidiary of the now delisted AI Limited. In June 2007 AI Construction demerged from the parent company AI Limited to form Forge Group Limited. Following the demerger the newly issued FGE shares traded at $0.60, which gave an initial market cap of $32.5m. As at writing, FGE shares were trading at $5.11, translating to a market cap of $441M.

Cimeco

Prior to the demerger, AI Limited acquired Cimeco Pty Ltd on the 5 September 2006 for $9.30m. Cimeco’s predecessor operated as Devaugh Pty Ltd for 30 years. Following the acquisition, the assets of AI Construction were rolled into Cimeco and the combined business continues to operate under…..

Read the full report on Forge Group Limited