THO SERVICES LTD 
By Australian Stock Exchange
From: Ranjan Rajagopal Date: 24 May 2013 Subject: Business Update and Market Outlook Thomas & Coffey LimitedABN 60 000 263 678
Level 1, Quad 3
102 Bennelong Road
Sydney Olympic Park NSW 2127
PO Box 6205 Silverwater NSW 1811
T 02 9008 2000 F 02 9008 2199
www.thomascoffey.com.au
Dear Sirs,
Please find attached an announcement for immediate release.
Company Secretary
ABN 60 000 263 678
Level 1, Quad 3
102 Bennelong Road
Sydney Olympic Park NSW 2127
PO Box 6205 Silverwater NSW 1811
T 02 9008 2000 F 02 9008 2199www.thomascoffey.com.au
24 May 2013
Thomas & Coffey Limited (ASX:THO) ("Company"), the specialised industrial services company, is providing an
update in relation to its current operating environment and market conditions.
In the Company's press release which accompanied our Half Yearly Results on 28 February 2013, Mr Comb, Managing Director stated that "the key issues likely to impact the full year's results will be the global and local conditions and in particular the timing and extent of the projected recovery of the resource sector's expenditure levels."
Unfortunately, market conditions have continued to deteriorate significantly in recent months. The Company's engineering and project management services business is experiencing a significant decline in the number of committed projects due largely to the continued slowdown in capital investment for mining infrastructure projects in the Bowen Basin by the major miners. The Company does not expect infrastructure spending to recover in the short to medium term as a number of previously proposed projects in the Bowen Basin have been either delayed or put on hold indefinitely. In addition, maintenance activities related to coal activities also remain weak.
Despite the above challenges, the Company has recently renewed a major maintenance contract in the Bowen Basin. Furthermore, the Company's maintenance divisions in the Industrial sectors are still returning strong results, whilst the engineering and project management services business have also seen a positive increase in their order book in sectors other than mining.
The Company is responding to the softening market conditions by continuing to implement cost saving initiatives to reduce corporate and regional overheads (as foreshadowed in the press release accompanying the Half Yearly Results). Mr Comb said "we have successfully implemented $10 million of annualised cost savings, representing
27% of the prior year's overhead expenses. In addition, further significant cost savings are being targeted over
the current half year."
As a result of the deteriorating market conditions and the impact of significant costs associated with the Company's overhead cost restructure, Thomas & Coffey anticipates to report earnings before interest and tax ("EBIT") loss from continuing operations for FY2013 between $8.5 million and $9.5 million. EBITDA loss for FY2013 is anticipated to be between $6 million and $7 million.
The full year results announcement is scheduled for 29 August 2013 and a further business update will be provided at that time.
Rex Comb | Chris Scholtz |
Managing Director | Chief Financial Officer |
Ph: 02 9008 2000 | Ph: 02 9008 2000 |
Thomas & Coffey Limited is a leading supplier of specialised industrial services to the heavy industry, mining, energy, resource and utility sectors. The company provides a comprehensive portfolio of asset and facility maintenance and engineering and construction project management services. Established in 1926, it now employs more than 750 skilled trades, professional and support services people who operate from over 10 branches at key commercial, industrial and mining centres.
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