Be careful, this is partly a function of rapid revenue growth....

Be careful, this is partly a function of rapid revenue growth. Contract assets only grew from 9% of revenue a year ago to 12% in the latest accounts.

The dollar value nearly tripled, but the rise relative to revenue was not that sharp. So the sharp rise reflects the need for working capital as the business expands and possibly the type of projects and contracts now being undertaken.

The existing contract assets may generate revenue, but there will be a new lot of work done and not yet paid which will expand if revenue keeps rising rapidly.

Aerison (AE1) looks to be in danger because of contract disputes (it certainly needs a capital injection). That is a real risk for contractors in the current environment with inflation, depending on the type of contracts being written. WSI is conservative with net cash rather than debt. Rapid growth still involves risks if the margins are skinny or mistakes are made.