SXE’s FY20 EBIT of $16.4m was in line with our expectations. The Company ended the financial year with a healthy balance sheet (cash $55.3m and no debt) to address organic and inorganic growth options. The current order book of $440m and a tender pipeline of more than $900m supports the medium term, and we expect conversion of opportunities in the infrastructure and resources sectors in particular. Our BUY call is based on value grounds, SXE’s diversification, a lower risk contracting profile, a strong balance sheet, and likely re-emergence of M&A opportunity.
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