So much so that I some time back even wrote the the chairman, questioning the ongoing need for it.
To his credit, he gave me a call and spent a good 45 minutes engaging me with the reasons behind it.
I think it is fair to say that I failed to appreciate just how much capital can be consumed by performance guarantees on large construction jobs. That, combined with an innate fear on the part of the board of not having full financial flexibility at all points in the cycle.
Which, I suppose is not a bad thing.
One of the first things that came into my mind when I saw that Maintenance (a far less capital-intensive activity) has now eclipsed Engineering Construction in terms of size is that the need for the DRP might be no longer. Hope springs eternal.
MND Price at posting:
$12.21 Sentiment: Buy Disclosure: Held
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