knowing the industry before you invest, page-22

Lets have a reality check on the reported $50m of booked work that was announced by CL for the second half of the FY.

In good times you would expect 30% GP margins (A$15m) on that sort of money.

In this market lets be generous and assume it was bid and won at 20% GP margins (A$10m profit).

NMS state they have 350 employees.
Lets assume they earn on average $60,000 with burdons.
Simple maths 350 staff earn $21m in wages for the FY.
For a half year thats $10.5m.

The GP for the announced work does not even cover wages.
Then you have leases (NMS do not own any of the building they occupy, interest on loans, vessel idle time etc etc.

Need a lot more money to get the smart industry savvy investors back on the NMS band wagon.

30c - giddy up!!