VMX’s FY19 EBITDA of $8.1m was up strongly on FY18’s $4.9m, driven by the solid, high margin contribution from the Services business, and sharp growth in Construction work in the 2H. The Company is upbeat on the outlook for both segments and entered FY20 with ~$80m work in hand and a $595m+ pipeline. We anticipate top line growth and operating leverage to deliver EBITDA margins at least at FY19’s levels in forecast periods. Our valuation increases to $0.40 (prior $0.32) and we maintain a SPEC BUY call.
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