Ann: Trading Update-COO.AX, page-24

"To be honest I think Bill is a better entrepreneur than he is a capital allocator."

Bill's contribution in the growth story that helped created Worley Parsons through a chain of acquisitions certainly showed those qualities but that was a long time ago. Has he now become more conservative? His track record as an investor in mining companies also suggests he is prepared to "diversify" to a certain extent into more risky areas, but that is his prerogative with his own money. With Bill as Chairman he seems to have a great influence (which is not unexpected with his majority shareholding) but he has the responsibility to ensure the board always act in shareholders best interests. As investors in Corum what do we want from him?

For mine I am now like others starting to think intrinsic growth opportunities are limited in its current spheres of operation. Without an acquisition it will be only about maintaining market share and revenue at best from current disappointing levels. The R & D efforts over the last few years seem not to have generated anything significant enough to create a substantial point of difference advancement to win market share or substantiate higher prices. Most of the achievements seem to have been related to upgrading technology and organisational change.

There must be opportunities out there and with the cash holdings and cheap money available they should be prepared to look at something more substantial that is a solid earner. A cash and equity deal sounds appealing.


BillB