Just to underline the balance sheet and cash flow...

Just to underline the balance sheet and cash flow puzzle.

Contract assets fell $12.1 million as WSI was paid for work done previously.

Yet operating cash flow was only $2.1 million. That leaves $10 million cash unexplained.

Trade payables fell $18.8 million, so they used freed up cash to pay down payables they had deferred paying at 30 June.

That means a shortage of $8.8 million in cash that had to come from somewhere else.

There was a jump in contract liabilities of $7.5 million which is where money has been invoiced (and maybe paid), but the work is still to be done.

These numbers suggest most/all of the contract liabilities were prepaid and used to reduce trade payables.

However, that suggests that even if profits are earned in the current half year, cash flow could be poor as they do work previously paid for.

Of course profits and margins on current work could jump, or they could let trade payables blow out again or have an increase in contract liabilities over the half year and cash flow could look better.

The directors know what happened last half year, but unfortunately we shareholders do not.