It is a bit hard to know from that announcement. I get the feeling it is more to do with their specific situation, most likely the delays they have alluded to in the couple of big in flight trials and some delay in signing new larger contracts that would start converting in to recognised revenue next year. It feels to me they have looked in to FY2024 and were unhappy with what they sore and have taken this action to enhance/protect profitability.
More broadly, I am not adverse to seeing them do this, they have always been generous employers and have never really bootstrapped things. A bit of a cost reset is no bad thing in my view.
CGS Price at posting:
$1.57 Sentiment: Buy Disclosure: Held
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