Media Update, page-2446

Hi ReXXar,

Thanks for doing more research scrutinising the performance for the last 3 years.

I had a look at the annual reports of 2018 and 2019 and the half year report of 2020 and have these calculations made:

2018 Rev 100.9m; Cost of Sale 67.4m; Gross Margin 33.2%,

2019 Rev 61.0m; Cost of Sale 51.5m; GM 15.6%

2020 half year Rev 57.4m; COS 38.8m; GM 32.4%

This is my own speculation here that the margin in 2019 was terribly low is due to design work done at Ivory Coast was recognized but revenue was not till financial close had taken place.

We could further see it on page 65 of 2019 Annual report where CES was drastically low compared to 2018.
SPS revenue has been increasing, from 21.7m to 26.4m to last year’s targeted 32m.

I would say that your graphs reflects quite well of the figures, the huge jump in backlog is from IC in 1Q2019, but we have to consider the nature of SPS decentralized business is a quick deployment quick design one, so I would not expect gigantic backlogs after we have de-emphasise CES.

As for cash flows, I do monitor the accounts receivable of the last few halves and I am quite satisfied with the situation.