Good morning bridog. The whole point of what I'm trying to do is strip away the IC contract which is masking the underlying core business, which is SPS, esp given this is what the new CEO is going to focus on in the long-term. Nevertheless let's talk about IC:
Re first comment, after FLC released a statement in Feb 2019 when they won IC, in one of the subsequent Quarterly reports they specifically broke down the revenue backlog of IC which will be split in 3 portions across FY19, FY20 and FY21. Maybe the date has been pushed back, which wouldn't surprise me. But what does that matter, what's the difference if they delayed construction until 2025, the point I was trying to make is this is a one-off custom engineering solutions product.
Re second comment, of course I'm being sarcastic, maybe I sound critical, but that is the approach one should take to all investments. I prefer to focus on the risks and downside, rather than the upside. This is a company that historically over promise and under delivers, its quite obvious if one reads the quarterly business update from 2017 to date, I've lost count how many times in FY18 they said they will be EBITDA positive in 2019. They blast numbers where they're making progress and does not address where they are not. For example, I'm looking at Q4 2018 report now, recurring revenue is US14.7m blasted across the heading in bold like its so great achievement, fast forward two years later, recurring revenue is now 6.7m (from memory) and expected to reach 9m, and they're once against blasting this 30%+ increase in recurring revenue like its some new record achievement, really????? I would rather they explain why it has decreased.
Re last comment IC backlog not included, yes they have, and have been in many reports. This is from the last quarterly report on the front page, quote "Current backlog of US$215 million, of which US$156 million is related to the Ivory Coast Project". This means non-IC backlog is $59m, which 1/3 less than 3 years ago when the business was formed!! Once again, this is something I like management to explain rather than the constant self-promotion.
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