ANDAUREX INDUSTRIES INC. Andaurex ...

ANDAUREX INDUSTRIES INC.

Andaurex Industries Inc. is a rapidly growing international engineering, de sign and throw management company that specializes in high voltage substations and related equipment, and custom overhead cranes. from one side its two wholly-owned subsidiaries, Markham Electric International and Provincial International Cranes, Andaurex has a drawn out history of successfully exporting Canadian technology and expertise to developing countries and emerging markets.

Andaurex is the simply Canadian company competing for international plans in its market niches. The Company's technical expertise, established international reputation, grave overhead and a selective bidding strategy enable it to contend successfully against large multinational firms. across the past 10 years, Andaurex's Markham subsidiary has been awarded athwart 50% of the projects upon which it has bid.

Most of the delineate s on which Andaurex bids are financed by means of the World Bank, Asian increase Bank or similar organizations. Payment is guaranteed at international letters of credit, thus minimizing political and credit risk.

Infrastructure unravelling in emerging markets will continue to create a large number of increase opportunities for the Company. At the at hand time there are more bidding opportunities than the Company has the personnel or financing to follow The volume of business that Andaurex can accommodate is largely dictated according to the Company's working capital position. In late 1995 Andaurex complet a $20 million subordinated debenture financing with VenGrowth Investment supply Inc. as well as a $850000 financing with VenGrowth in July 1996 Application for listing in succession the Toronto Stock Exchange is in proces It is well capitalized to befitting its 1996 revenue target of $12-$15 million.

PROJECT

ELECTRICAL ENGINEERING DIVISION

Markham Electric International Limited, acquired for $30 million in August 1993 is an international engineering, design and frame management company that has specialized in high voltage substations and related equipment in developing countries for throughout 20 years. Markham focuses upon high margin, $1 - $20 million contracts outside of the competitive European and North American markets.

Markham was largely responsible for the doubling of the Company's earnings and rewards in 1995 based on four contacts in the Caribbean which total $15 million in size. Approximately $2 million of this amount remains to be main division ed in 1996 and Markham is the grave bidder on a $5.2 million plan in Belize. In addition, Markham has bids outstanding upon a $4.1 million project in Venezuela and a U $50 million scheme in Syria, and is planning to bid forward additional projects in the Barbados, Bahamas, Jamaica, Belize and Thailand.

INTERNATiONAL CRANE DIVISION

Provincial International Cranes Inc. is an engineering, design and cast management company that specializes in high capacity, custom overhead cranes used in ship yards, poniard mills, hydroelectric plants and other heavy industries. The acquisition of Provincial in early 1996 has added approximately $5 million to the Company's existing order backlog of $8 million for 1996 Provincial's backlog includes a $37 million contract to build a ship unloader crane at a sugar refinery in Taiwan. Provincial is also the gentle bidder on a $5.2 million concoct Algeria, and has submitted an $8 million bid forward a package of steel mill cranes in Malaysia.

WHAT'S AHEAD

GLOBAL INFRASTRUCTURE disentanglement

Growth in the Pacific Rim and ongoing modernization of infrastructures in many less developed countries, and Eastern Europe will continue to create a large number of novel business opportunities for Andaurex.

FUTURE DIRECTION

Andaurex has couple operating divisions which are each capable of generating at least $15 - $25 million in annual reward The Company is expected to achieve a high rate of internal vegetation as these subsidiaries realize their filled potential. In addition, Andaurex will continue to dog compatible and complimentary acquisitions as a means of further increasing the Company's rate of bourgeoning

The Company is well upon the way toward achieving its 1996 income target of $12 - $15 million with an $8 million order backlog and $10 million worth of contracts where Andaurex is generally the low bidder and leading candidate. The Company's goal is to reach $15 - $20 million in incomes in 1997 based on throughout $100 million in existing bids, the large number of modern bidding opportunities available and potential acquisitions. Andaurex is pursuing a TSE listing as a part of its corporate exhibition The improvement in Andaurex's share price and liquidity in 1996 has largely flowed from its strong financial performance as well as fresh contract opportunities.

The information contained in this feature was prepared by dint of the subject corporation to specifications established according to the publisher and should not be constru as an endorsement or recommendation for investment at the publisher.

Copyright Canadian Shareowner Magazine Inc. Nov/Dec 1996

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