Michael,Completely agree with your summary. ERG will be a...

Michael,

Completely agree with your summary. ERG will be a different entity when these major contracts are delivered. The risk that these wont be delivered is miniscule now.
As expected these large projects are only expected to deliver a 2-3%. Keep in mind however that even though these projects have a small margin they will be freeing up $120m of much needed capital.
Going forward any new large projects are expected to return much better margins due to the restructure over recent years and the ongoing cost cutting initiatives (like manufacturing in China and engineerring in India).

My only concern from the AGM is the risk of further legal issues. It appears that ERG have backed down from legal battles with Lazio and Octopus (and we all know the damage Cubic caused in Sydney) to focus on going forward. Given that the major competitors for large Projects are Thales and Cubic (with 100's of times the resources ERG has) they could yet try to 'de-rail' ERG's future large contract efforts with below the belt legal tactics. Also a little concerning that ERG do not seem to have patents over much of their IP.

Mr.ED