Ann: Decmil Awarded $46M of Defence Contracts-DCG.AX, page-6

I agree with overloaded, this is an announcement of jobs which they have won previously. They store up a lot of little jobs, some of which may have already been performed, then announce them when they think they need it most. The giveaway is that they never update their group revenue numbers in an announcement like this. That's because there is no impact, all the work has already been factored in to the $300m revenue figure they released the other day.

I also agree with friendlydwarves. Note in the announcement the other day that "underlying" EBITDA was around $20m on $300m or about 6%. This means that average project margin is down to around 10% from 15% (when you include overheads of 4 - 5%). This would be in part because of all the little jobs they've been winning at small margins, like these Defence projects. The thing is, if the average margins continue to fall, say down to 6 - 7%, then they're making no money even on an "underlying" basis. When you throw in the problem jobs and ongoing restructuring costs, their cash will be disappearing very rapidly.

I'm getting very worried for this business.