The real question is why they flicked the DRP switch, given they...

The real question is why they flicked the DRP switch, given they finished the FY2019 year with more than $53m in cash (and no debt), along with $64m in Work-in-Progress, offset by $24m in Payables, Net of Receivables) and $13m in Deferred Revenue.

Current Assets exceeds Current Liabilities by $68m and exceeds Total Liabilities by $59m

In historical context, Current Assets Less Current Liabilities is at an all-time high:



So, again, why the need to conserve capital?

One obvious reason would be to fund further increases in WiP.
That would, I think, be a good reason.
(But even then, it's a highly bankable business in the sweet spot of its business cycle, so the banks would have been more than willing, and on decent terms, to provide it with a $10m or $15m working capital facility.)

Another possible reason would be to build firepower for a pending acquisition.
Which I don't think would be a good reason.


Either way, at ~3.5x EV/EBITDA, equity is a pretty expensive source of capital
.