EVZ Limited

Envirozel is an engineering company providing construction, fabrication and maintenance services to a range of industries, including oil, gas and water

Jul 17, 2009
Trevor Hoey

October 2008

In 2005-06 the revenues of Envirozel, a diversified manufacturing company, nearly doubled and the company achieved its maiden profit. Since then, revenues have grown from about $13 million to $88 million in 2007-08.

Oct 4, 2008
Trevor Hoey

Envirozel (EVZ)

Oct 3, 2008
Trevor Hoey

August 2008

Briefs

HOUSEWARES

Aug 27, 2008
Noelle Waugh; Julie-anne Sprague; Tracy Lee; Noelle Waugh

June 2008

Briefs

Romano leads Coates

Jun 4, 2008
James Chessell, Neil Shoebridge, Staff reporter, Tracy Lee, Yvonne Ball

March 2008

A couple of prospects that hold water

Regardless of economic conditions, demand for storage tanks and associated processing and distribution facilities is growing.

Mar 26, 2008
Trevor Hoey

Tough row to hoe for juniors

Every Day Mine Services (EDS) Shares in the junior drill rig operator lost more than one-quarter of their value on Monday after the company cut its net profit guidance for fiscal 2008 because of a blow-out in costs for a drilling contract. The company became the latest in mining services to fall prey to higher costs, cutting its 2008 net profit forecast to $2.9 million to reflect higher depreciation charges and costs on a contract at Cobar Management's mine in the mining hub of Cobar, NSW. Although companies in the mining services sector are generally experiencing strong demand conditions, performance has been plagued by labour shortages and rising costs. EDMS operates 28 drill rigs - all of which are currently employed - and expects to add to its fleet in the second half of 2008. But in proof that not all mining services necessarily fit the "market darling" mould, shares have underperformed since the company's listing in June last year. The stock has shed 43 per cent since then. It touched a recent high of 75.5¢ on July 25 but scraped a low of 35¢ on Monday. Envirozel (EVZ) The past three months haven't been kind to shares in the water recycling specialist. The stock has shed nearly two-thirds of its value since its most recent high of 67.1¢ in mid-December and its below-forecast interim result last week only added to shareholder's pain. It was another day of declines on Monday in what has become an erratic intraday pattern for the stock since reporting interim results last week. Since then, the stock has put investors on a roller-coaster ride, shedding 21 per cent after last Wednesday's result and another 11.7 per cent on Thursday, then bouncing 9.4 per cent on Friday. Citigroup is looking through the prevailing market conditions and has set a price target at almost double the current share price, saying the stock could trade at 44¢ in the next 12 months based on strong earnings growth ahead. That compares to Monday's closing price of 27.5¢. The broker says Envirozel's recent acquisitions of engineering-based businesses, all of which were bought at very low multiples, are expected to deliver over 57 per cent earnings per share growth in fiscal 2008. The proceeds from a capital raising in August last year are expected to be used to make further acquisitions which Citigroup sees as providing a further positive boost to earnings per share growth. Ludowici (LDW) Shares in the equipment supplier to the minerals industry have been in terminal decline for the better part of a year and the company's interim results on Monday did little to help. Shares fell to a fresh low of $4.51 on Monday after the company said net profit slumped 77 per cent to $1.88 million in the six months ended December 31. Evidently 2007 was a horror year for the company with a long list of problems wiping out a 10.3 per cent increase in sales, not least of which was an $11.7 million a write-down on non-core assets, poor sales in the US, higher tax costs and increased research and development spending. The company was also hit hard by infrastructure bottlenecks along the Eastern seaboard that cut its earnings from coal contracts and higher borrowing and project costs. The company slashed its final dividend from 14.5¢ to 8¢, fully franked. Management promised a better 2008, saying the restructuring process that continues with the sale of non-core assets was beginning to "bear fruit" and saying it would keep looking for acquisitions. Further non-core asset sales will take place in the year ahead.