Coffey keeps eye open for bargains

Engineering and project management provider Coffey International Ltd says it is
keeping watch for acquisition opportunities opened up by share market turmoil.
Managing director Roger Olds told AAP on Monday the company continued to run the
slide rule over potential targets made cheap by ailing share prices.
Mr Olds said Coffey had just emerged from "an extensive acquisition period" but
remained on the lookout for bargains.
"The timing was good: we built the business at a time when the markets were strong
and the access to capital was good,and now we can really get the value out of it at
a time when those things aren't readily available," he said.
"We keep looking.
"We've certainly taken a lot off (our acquisition list) because there's a limit to
how much we can do.
"But we certainly haven't stopped and there's a few things that we continue to watch
closely."
Mr Olds said Coffey was diversified enough to withstand the market downturn.
He said the company was focused on infrastructure, resources, international
development and property, "so we do have fairly good protection against private
enterprise running out of money".
"We've always been building a diversified business ... by service, sector and
geography.
"Government sectors are not what I'd say are safe havens but it's good to have
exposure to government in the current environment, with private enterprises hit more
so by the lack of funds.
"But in terms of our own business, so far, so good."
Mr Olds said Coffey's net debt was somewhere between $100 million and $120 million,
leaving "headroom" of about $80 million from its $200 million debt facility.
"We're assuming we'll have to run the company with the current capital for a couple
of years.
"I take the view ... don't raise equity, don't assume you'll get further debt and
run the business accordingly."
Shares in Coffey were up four cents, or 2.41 per cent, at $1.70.