Sure I can see that but even at the peak of the GFC the business...

Sure I can see that but even at the peak of the GFC the business was hardly distressed, generating operating cash flows of $9m in 2010.

Also in 2008 most floors were mature and profitable with high levels of occupancy. Profit was $34m from $190m revenue compared with $21m from $208m in 2013. Therefore such aggressive expansion would make less sense if the same thing happened today.

If you look at cash balances since the CR in 2009, SRV have never had less than $100m. In other words, the $80m raised in 2009 has been left unused for the last 4 years. With the amount of cash currently being generated, it seems unlikely that these funds will be put to use any time soon.

I agree that it is wise to have a cash buffer in this type of business but isn't $100m a little over zealous?