Matrix Composites & Engineering provides equipment, consumables and services for offshore infrastructure facilities with a particular focus on the oil and gas sector. While the company has exposure to the mining sector, fabrication and machining revenue from this segment has been in decline for some time and management’s decision to focus on the offshore services market appears well founded.

Analysts at Hartleys noted the company’s 2013-14 earnings before interest, tax, depreciation and amortisation was a substantial 19 per cent ahead of its expectations. Improved margins were a feature of the result, driven by operational efficiencies. Hartleys expects the surge in offshore production projects expected for completion in 2017 and 2018 will support longer term demand for the company’s products are pitched at that market.