Friday, August 20th, 2010
Monadelphous Group Limited (ASX:MND) listed in 1991, is a West Australian based engineering group that provides project management, construction, asset management and maintenance services to the resources, energy and infrastructure industry sectors.
Engineering Construction: This division provides large scale, multi-disciplinary project management and construction services including structural, mechanical, tankage and piping construction together with complete design.
This division also offers services including instrumentation, electrical engineering, telecommunications, electrical and instrumentation design.
Maintenance and Industrial Services: This division offers services in the fixed and mobile plant maintenance, capital works, shutdown planning management & execution, instrumentation and electrical services, specialist concrete and structural maintenance, fabrication, labour and equipment hire.
Skystar Airport Services: This division offers full service desk support. All check in and ticketing functions, embarking/disembarking of passengers, arrivals/departures information line, passenger assistances, baggage services, loading/unloading of passenger baggage, aircraft refuelling, flight planning assistance, flight editing, lavatory and water services, and cabin cleaning.
Outsourcing by the mining industry has created the mining services industry where businesses provide engineering design, construction services, project management, maintenance of plant and provision of specialised machinery. The industry is cyclical by nature and capital expenditure by miner’s ebbs and flows with commodity prices.
The largest component of MND’s revenue is derived from the engineering design and construction division that has enjoyed a successful past 5 years growing revenue at an average of 23% p.a. This is the result of strong capital investment by the mining industry that itself has enjoyed the resources boom fuelled by higher commodity prices providing huge opportunities over the past few years.
MND is leveraged to the growth of the resources, energy and infrastructure sectors.