Just realised there was a correction yesterday, presenting an opportunity to buy at as low as 83.5 cents. Wished I had seen it... the stock closed at 85.5 cents. This stock is held by Aberdeen, etc. Value funds.
Singapore (1 October 2012) - CSE Global Limited (CSE) today announced the securing of an order to engineer, procure and construct a Telecommunications Systems for a LNG Onshore Facility in Darwin, Australia. This order is one of a number of large orders that CSE have been tracking over recent months.
The order further entrenches CSE as the leading Telecommunications Systems Integration partner of choice for customers in the resources sector.
Although the uncertainty around UK health market continues CSE is pleased to announce that the Group has recently been awarded two Mental Health projects in the UK which have been secured outside of the National Programme in what is known as the Northern Clusters.
Total Value of these projects is approximately S$33m.
The management team continues to pursue other opportunities that have been previously highlighted in our quarterly presentations.
These projects will have a positive impact on CSE's profit for the 2012 and 2013 financial years. None of the directors or substantial shareholders of CSE has any interest, direct or indirect, in the contracts.
Most importantly, UK business (~33% of group profit) can fetch higher PE than CSE itself, unlocking value for its shareholders. CSE intends to return most of the cash proceeds (we estimate 26-28 Scts DPS) to its shareholders and operate as a net cash entity, saving interest costs (~S$2m annually or 4% of profit).
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