Cyph, looking at the balance sheet in the latest half yearly, current provisions rose from $448k to $487k and non-current rose $246k to $351k. The overall impact is a rise of about $145k, the other side of which was probably booked as an expense.
Provisions are sometimes used to hide profit on the balance sheet, it is then released in future periods to smooth results. However, auditors are wise to this and will make management provide justification, but a provision is just an estimate and so these numbers can always be explained.
Then again, maybe they represent a real liability with cash implications in future in this case. We just have to wait and see. Certainly, I thought the profit reported was low given cash flows and performance prior to last year (which had significant one offs).
CTE Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
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