Cardno expands presence in resource sector

8/21/2008

International infrastructure services company Cardno Limited (ASX: CDD), today announced the acquisition of Spectrum Survey & Mapping, a 51 person specialist survey firm based in Perth and Kalgoorlie, Western Australia. 

The acquisition will add revenues of approximately $7 million this financial year and is the second this month following the purchase last week of Sydney-based marine and freshwater ecology consultants, The Ecology Lab.
 
Managing Director of Cardno, Andrew Buckley, said the acquisition of Spectrum Survey & Mapping complemented Cardno’s growing presence in the resources and survey sectors.
 
“The acquisition of Spectrum aligns with Cardno’s stated strategy of seeking more exposure to the resources sector, and follows Cardno’s purchase of Perth-based, mining structures consultancy Cardno Buckland in September 2007. Cardno is also keen to add survey capability across Australia complementing existing capacity in Mackay (Qld.), New Zealand (Cardno TCB) and the U.S.A. (WRG Design),” said Mr. Buckley.
 
“With the resources boom continuing at a strong pace, Cardno has secured further representation in this growth market,” Mr Buckley added.
 
“Also, having an office in Kalgoorlie is a positive step and is in line with the company’s philosophy to provide representation in regional areas based on client needs,” Mr Buckley said. “Spectrum also provides great cross selling opportunities for Cardno.”
 
Spectrum Survey & Mapping specialises in open cut and underground mine survey, GPS survey, engineering survey and cadastral survey. The firm also offers a range of mapping and specialised photography services to the mining and urban development industries.

From today, the business will be known as Cardno Spectrum Survey.
 
The company directors and staff will remain with the business and current Managing Director, Paul Zadnik will become the Business Unit Manager reporting to Cardno’s W.A. Division Manager, Mr. Gavin Taylor.
 
Mr Zadnik believes there are numerous opportunities to cross sell Cardno Spectrum Survey’s skill set to Cardno’s existing client base, especially in Western Australia and Queensland’s mining boom areas.
 
“Our client base includes some of Australia’s major mining companies in Western Australia, South Australia, Queensland and Northern Territory,” said Mr Zadnik.
 
“Adding to the diversity of our client base is a strong portfolio of urban development clients such as Landcorp, the West Australian government land developer.”
 
Spectrum has also worked on numerous international mining assignments in locations such as Eastern Europe, Africa and Asia.
 
On August 19th Cardno announced its 2008 FY results showing NPAT of $27.45m which was a 49% increase over the previous year.
 
Mr Buckley also noted that Cardno’s balance sheet is strong with low gearing and that Cardno was well placed to continue to pursue and fund its organic growth and acquisition strategy.
 
The Cardno Spectrum Survey acquisition has been funded with a mix of cash, from available funds, and shares. To fund the acquisition, up to 456,947 shares may be issued at a price of $4.21 per share for which application will be made pursuant to a short form Prospectus.
 
ENDS
 
For further information:

Andrew Buckley, Managing Director, (07) 3369 9822 or 0412 059 526
Jeff Forbes, Chief Financial Officer, (07) 3369 9822 or 0408 756 790
 
About Cardno: Cardno is an integrated professional services provider, locally delivering the specialist advice necessary to create or improve the physical and social infrastructure that underpins communities around the world. Our team comprises leading advisers who plan, design and deliver sustainable projects or community programs. We are an international company, listed on the Australian Securities Exchange [ASX: CDD]. www.cardno.com