Macmahon rebound gathers momentum

Macmahon Holdings CEO Michael Finnegan says the company proved sceptics wrong with its strong FY18 operating and financial results and could really surprise with its gains over the next three years. “With [our current] order book and pipeline we’re in a pretty good position and the key is making sure no one gets ahead of themselves and cocky,” he told MNN on the sidelines of Macmahon’s 55th annual general meeting.

Macmahon rebound gathers momentum Macmahon rebound gathers momentum Macmahon rebound gathers momentum Macmahon rebound gathers momentum Macmahon rebound gathers momentum

Michael Finnegan (centre): "We have delivered on our promise, and we expect further growth in FY19"

Plenty of contractors did just that during the last big mining investment upswing - growing too fast, and often too far from home, on margins that were too thin and balance sheets that got too stressed - and Macmahon was one of them.

Its share price (ASX: MAH) got down to A4c in April, 2015, and is now around 26c, capitalising the company at A$550 million.

The company was nearly swallowed up by Spanish-controlled CIMIC with a lowball 2017 takeover bid.

Macmahon said the offer was opportunistic and it was then rebounding.

"Over 12 months ago, both as part of our defence of the hostile takeover bid from CIMIC and as part of seeking approval for the AMNT [US$150 million asset purchase] transaction, we guided that we would achieve a significant turnaround ...