Ann: Appendix 4C - quarterly, page-19

There was delayed receipts for a few million (disclosed to market) as well as at least around 3 million received in advance (undisclosed to market and impossible to know until the prelim report came out). So starting from ~$5 million behind, the September quarterly released last week actually slightly beat my expectations (it was never going to be cash flow positive and this was very clear well in advance to those that can read and analyse financial statements).

To explain briefly to those unaware, the fact that the June quarterly cash receipts didn’t match up with the revenues in the FY19 results proves they received a significant amount in advance. This is the underlying reason for the 5 cent pump and dump. It’s quite unusual for so much contract receipts to be received before work is finalised in this sector I believe. I never thought anywhere near the entire June net cash receipts were profit so originally bought in near 3 cents rather than 5 cents but clearly some naive speculative punters did.

The business is significantly de-risked from before the June quarter 4C as we have audited proof of profit, plenty of cash, etc. and a stronger pipeline for FY20 yet we are trading at lower than before... makes no sense at all but that’s the ASX spec market where profits are ignored and foolish hype is embraced!

I was initially somewhat critical of WSI’s investor relations but to be fair to them there’s not much that could have been done to withstand Bell Potter suddenly dumping 35 million shares on market over only ~6 weeks into relatively little volume.