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Downer EDI Limited (DOW) said it has ample liquidity with in excess of $600 million in available facilities and cash balances. The engineering and infrastructure services company made the statement after an article in the Sydney Morning Herald and The Age today said one of Downer’s key divisions halted supplier payments of more than $35 million to meet end-of-year cash-flow targets and avoid a potential net cash outflow.

The Fairfax article said a leaked internal email from a senior executive at Downer had called into question the group's financial reporting.

In response, Downer said the  Works Australia division expects to pay all creditors as per agreed creditor terms whilst meeting its internal cash targets.

“The $35 million referred to in the articles relates to identified collectable debtors not creditors as inferred and a significant portion of this amount is expected to be received by year end,” the company said.

Downer said it would continue to manage its debtors and creditors to ensure a strong and balanced focus on total management of working capital.

As at 1103 AEST, Downer EDI shares were down 19c to $3.80.

Macmahon Holdings Limited (MAH) said it would have insufficient franking credits available to frank a final dividend as a result of lower than anticipated tax payments. The company did, however, confirm that its target dividend payout policy of 50% remains in place.

In a statement released today, Macmahon reaffirmed FY10 net profit after tax guidance of $36 – $40 million.

The company said it has won $1.2 billion of work since 1 January 2010 and has an order book in excess of $2.1 billion.

As at 1036 AEST, Macmahon shares were up 2c to 58.5c.

Asciano Group (AIO) said it has completed the restructuring of its bank facilities. The ports and rail operator said the restructure provides for the release of security held by the bank syndicate and removes prohibitions on borrowing outside the existing facilities.

Managing director and CEO, Mark Rowsthorn, said the amendments provide the company with flexibility to fund its growth profile and allow it to refinance its $2.25 billion debt maturing in May 2012 in the debt capital markets.

“By providing access to the full range of funding options, these amendments will significantly improve Asciano’s financial flexibility,” Mr Rowsthorn said.

“We can now commence implementation of our medium term debt strategy to diversify our funding and lengthen our maturity profile.”

In a separate statement, Asciano said its board of directors and that of the responsible entity of the Asciano Finance Trust, The Trust Company (RE Services) Limited, have each approved a proposal to simplify the corporate structure by converting from a stapled security into a single holding company.

“The Corporatisation Proposal, if approved, will provide a more suitable corporate structure for Asciano and is the final step in transforming Asciano into a typical industrial company within the top 50 entities listed on the Australian Securities Exchange,” the company said.

Asciano said the attributes of the simplified corporate structure are likely to attract a broader range of investors, both domestically and overseas.

The proposal remains the subject of a number of conditions.

The company said if approved, it is expected that the proposal would be implemented in mid November 2010.

Asciano said under the proposal, the existing stapling arrangements would be terminated and shareholders would exchange all of their units in the Asciano Finance Trust for shares in a newly incorporated wholly-owned subsidiary of Asciano Limited, called NewCo.

The company said it would then acquire all of the NewCo shares from the NewCo shareholders in exchange for the issue to them of new Asciano Limited shares.

A share consolidation would be effected so that there is no change in the total number of shares in Asciano on issue following implementation of the proposal.

As at 1428 AEST, Asciano shares were up 1.5c to $1.69.

Seven Group Holdings Limited (SVW) has become a cornerstone investor in the initial public offering and listing of Agricultural Bank of China (“ABC”). Seven announced the signing of a Memorandum of Understanding (“MoU”) and an Investment Agreement with ABC, whereby Seven would invest $US250 million in China’s largest bank by retail customers.

The company said the agreement was part of a strategy to underpin the development of Seven’s WesTrac China business and create new opportunities for Seven to leverage China’s economic growth

Seven executive chairman, Kerry Stokes, said the company can see the investment delivering value and strategic return for the company.

“We intend this investment to be a hold for the medium term,” Mr Stokes said.

In addition, the two companies have signed an agreement that would see them form a strategic alliance focusing on the growth of Seven’s WesTrac China business and the creation of mutual business opportunities for WesTrac and Agricultural Bank of China clients.

“Under the memorandum of understanding both companies will focus on developing financing and leasing solutions for WesTrac China’s customers, sharing of customer relationships for the progression of respective business opportunities, and the development of new joint business opportunities for WesTrac China and Agricultural Bank of China in China and other international markets,” Seven said.  

“Also under the memorandum of understanding, both companies will support the establishment of an international board of advisors to work with Agricultural Bank’s executive team and chairman on growth objectives in China and abroad.”

As at 1532 AEST, Seven shares were down 18c to $5.98.

Seven Group Holdings Limited (SVW) confirmed it has applied for shares in Agricultural Bank of China’s initial public offering. The company said the maximum value applied for is US$250,000,000.

However, Seven said in its response to online news reports this morning, that it has not received confirmation as to the success of its application. 

The company said it made the announcement now in order to prevent the market being misinformed.

Seven said it would update the market as to the value of any shares which it has been allocated on receiving confirmation.

The company said the stake, if allocated, would be a strategic investment intended to further Seven's links with and assisting its WesTrac business in North Eastern China.

As at 1032 AEST, Seven shares were down 2c to $6.14.

Transfield Services Limited (TSE) updated the market this morning, saying it had picked up more than $200 million in new work across its international businesses. Some of the work has come from the Gulf of Mexico oil spill disaster, with US subsidiary TIMEC providing specialist services to work on oil-spill clean-up activities in the gulf.

Other work includes maintenance and supply services for the New Zealand and Victorian electricity sectors.

Managing director and CEO, Peter Goode, said the company’s capability of delivering asset management solutions from an owner's perspective continued to position them competitively across a variety of geographies and asset classes.

”We continue to be disciplined in strengthening our order book with long term contracts that maximise our ability to provide consistency of earnings, generating solid and reliable returns,” Mr Goode said.

At 1116 AEST, Transfield shares were down 10c to $3.26.

Alesco Corporation Limited (ALS) said it is expecting to post a loss around $126 million for the year ended 31 May 2010. Following the release of its unaudited financial statements, the wholesale distribution company said the loss was on the back of a $133 million writedown on its Water Products and Services Division.

Chairman, Mark Luby, also noted the weak performance of its Functional & Decorative Products’ division, reflecting both weaker end markets and operational inefficiencies.

Meanwhile, CEO Peter Boyd acknowledged the company was facing challenges.

”The focus will be on improving operational performance across each of our Businesses,” Mr Boyd said.

“My immediate priority will be Functional & Decorative Products and Water Products & Services divisions."

Mr Boyd said the Functional & Decorative Products’ management team – strengthened by the appointment of new group general manager Rob Guttentag in February this year – is in the process of implementing a number of key projects designed to revitalise product ranges, streamline operations, improve customer service levels and deliver improved earnings.

The company said the final, audited results would be available on July 28.

The board has decided not to pay a dividend, however suggested that by March next year, a dividend would, once again, be forthcoming. 

At the open Friday, Alesco shares were down 16c to $2.69.

UGL Limited (UGL) today announced that it has secured new works and project extensions with a range of blue chip customers worth a total end value of approximately $280 million. The company also reaffirmed its previously stated FY10 earnings guidance, which is for profit to be in line with the prior year.

UGL said the contracts are evenly distributed between new works and project extensions and include work with Anglo Coal at its German Creek Mine, a EPCM and shutdown project, a maintenance turnaround agreement at Orica’s Kooragang Island ammonium nitrate plant, a new coal handling preparation plant maintenance project for Wesfarmers Curragh mine, a three year mechanical and electrical maintenance agreement for BHP Billiton Mitsubishi Alliance Blackwater mine and a three year extension for maintenance and minor capital works at Incitec Pivot’s Phosphate Hill facility.

UGL’s managing director and CEO, Richard Leupen, said the new projects and extensions demonstrate the strength through diversity within the company’s resources business.

“We are encouraged by the momentum across all of our businesses, and UGL has an active pipeline of near term tendering opportunities that we are actively pursuing in the oil and gas, infrastructure, property services and transport sectors,” Mr Leupen added.

As at 1123 AEST, UGL shares were up 9c to $13.94.

Asciano Group (AIO) today said it would not pay a final dividend for FY10. The decision to cut the dividend means it will be at least two years since Asciano last paid a dividend.

The news comes two days after CEO Mark Rowsthorn extended his contract at the company, securing a $900,000 bonus along the way.

"The Board of Asciano today announces that, given the Company’s better then expected growth prospects and consequent capital expenditure requirements, and in light of the impairment charge expected to be reported for the financial year ended 30 June 2010, it will not pay a final distribution in respect of the 2010 financial year," Asciano said, defending its decision.

At the open Thursday, Asciano shares were trading up 1c to $1.635.

Leighton Holdings Limited (LEI) subsidiary, Leighton Asia, said it has been awarded a $1.1 billion contract for the expansion of the mining services at the MSJ coal mine in Indonesia for PT Mahakam Sumber Jaya (“MSJ”). At the same time, Thiess Services were awarded $405 million remediation project.

The $1.1 billion contract was a six year extension was for the company’s subsidiary PT Leighton Contractors Indonesia, for it to expand its current overburden removal and coal mining operations to over 8 million tonnes of coal per annum.

Managing Director Hamish Tyrwhitt said the contract extension was a testament to Leighton’s strong performance on the project since 2004.

“The TANITO group is one of Indonesia’s largest and most successful coal mining companies and the award of this contract further solidifies our close working relationship, “Mr. Tyrwhitt said.

”Our operation in Indonesia has been an outstanding performer for the past few years, and we expect to continue to perform strongly in both mining and infrastructure. This contract takes Leighton Asia’s work in hand to record levels of over A$7bn.”

At 1038 AEST, Leighton shares were up 99c to $33.30.