The company has been making a good return on design, construction and commissioning, however, its board believes it is better off weighting its portfolio towards the recurring revenue asset management work.

It is prepared to buy complementary businesses to build out its service offering, multi-skill its employee base and to leverage and maintain its construction capability.

Management has identified a pipeline of work opportunities totalling A$893 million.

Valmec managing director Steve Dropulich said he believed the asset services approach provided a low-risk, high-growth, step-change opportunity.

"By leveraging our current capabilities and experience, we are focused on developing a more robust business by re-cutting the revenue split to have more emphasis on multi-year, recurring contracts rather than being too reliant on construction projects," he said.

"Our clients will welcome the one-stop shop offering because reducing the cost of asset ownership and maintaining asset availability, integrity, reliability and lifespan are key deliverables in the current climate."

Valmec shares last traded at 22.5c, valuing the company at just under $30 million.