Extract from last market Ann 23/12"Operations:Decmil and the New...

Extract from last market Ann 23/12

"Operations:
Decmil and the New Zealand Department of Corrections (“Department of Corrections”) are in discussions regarding the Rapid Deployment Prisons program. Both parties had previously agreed to a process to “reset” the contract, given multiple variations and delivery challenges. In November 2019, the Department of Corrections informed Decmil that it was no longer prepared to continue the reset process and would work through the variations separately.Whilst Decmil does not believe this change by the Department of Corrections will have a material impact on its earnings, delays will be experienced and it will impact on the Company’s cash position,until resolution of both time and cost entitlements are achieved. Notwithstanding the cash impact outlined above, the Company retains sufficient cash reserves and working capital facilities."

Although, I agree Decmil poor management in NZ looks to be the main problem but on other hand contract termination does not look fair, negotiation should have yielded a better outcome for both.

Interested to know thoughts..how the latest announcement fit in with the previous one , estimates of magnitude of impact here?