Ann: Half Yearly Accounts, page-37

What I wrote above. It is not clear how good cash flow will be this half year given the jump in contract liabilities. Net contract assets and liabilities have gone from positive $22.6 million to $3 million in 6 months. Trade receivables now at least exceed payables. I am a cautious investor and these large unexplained swings in balances make me nervous. Profits need to start appearing in cash flow.

They are viable given the net cash on the balance sheet, but any rewards for shareholders could be long delayed. It will take them a while to rebuild market confidence so regular profits (and cash flow) will be needed before they trade on a reasonable PE. More contract announcements would help, but otherwise given the lack of company briefings we will be waiting until the full year report to find out how they are travelling.

There are better options among the contractors that communicate and are already larger better run businesses paying dividends and with track records. I hold SRG, DUR, SXE, CVL and COS. WSI is a spec, with all that implies. Usually I would sell something like WSI that performed so poorly mid year and take the loss, but there is at least the potential here for a turnaround in due course.

Thanks for your work and comments which underline the possible eventual upside.