Q Coates are calling the current trading conditions patchy, how are you finding it?

A We are finding that all of our divisions are actually performing very well. Our distribution business is the jewel in the crown, its doing very well at the moment closely followed by crane hire then general hire business.

Q TBGL structure is different to others in the sector, how is it different?

A We are multi faceted, our business model is distribution, which is primarily selling equipment. Crane hire which is a very strong dry hire business, and general hire which is similar to Coates.

Q What about your capital structure, because your gearing is a lot lower than the others as well?

A We have just had a Rights Issue and raised $49.5 million, we have discharged dept and our balance sheet is looking very strong and our gearing is running at approx 29%.

Q Your last results profit was up 23% on last year, can that kind of growth continue?

A Yes it can, the two recent acquisitions in the last 3 months, they were bought because they were strong well run businesses and we expect them to continue forward and there may well be future acquisitions. The integration of these new businesses are going very well.

Q A significant proportion of your business services the resource sector, obviously a booming sector at the moment. How long do you think that sort of demand will continue?

A More knowledgable people than I have forecast going through to about 2010 then there will be a leveling off, and then it will start climbing again about 2011 / 2012 and that's as far as I will take the forecast.

Q And what happens for you when that slows, or are you diversified enough that it won't affect you that much?

A We are diversified, we are dealing in resources, infrastructure, construction, environmental, so we are covering a lot of market segments, we have been there before and we know how to intelligently control costs and that's the secret of our success.

Q You have operations through most of the major states, how are they stacking up, where are the strengths and weaknesses around the country?

A Clearly WA is the strongest followed by QLD, then VIC, SA will come online end of next year with Olympic Dam, NSW I think has bottomed, and will start climbing but we won't see anything happening there for about the next 12-18 months.

Q Are you considering buying Coates?

A No, not this week!

Q Speaking of acquisitions, is there any progress for other smaller bolt ons?

A Yes we have targeted probably 3 or 4 companies and we are currently in the research and investigation stage.

Q Operationally, where do you see the biggest opportunities for expansion?

A Well going forward, we have more or less reached our peak in distribution we have a very good selection of brand product to sell, our expansion is going to be in the crane business and in general hire.