I first put this company on my watch list after I saw the...

I first put this company on my watch list after I saw the announcement of the increased dividend and huge increase in cash balance.

I didnt buy and was cautious because I have never seen a similar announcement showing such a big increase in cash without full explaination.

The accounts today show the unusually large increase in cash was mostly due to
1. a $4m reduction in receivables, ie customers paid their invoices quicker,
2. a $4m increase in contract liabilities, ie appears they are receiving advance payments from customers before doing the work.

Both these changes are one-off situations which cant be consistently repeated.

I cant find any commentary in the reports about why these changes have occurred which is disappointing.

I do now question why managment selectively disclosed some financials in the way they did. They disclosed “cherry picked” statistics which
gave a glossy picture but did not give investors an accurate picture of the financials.
I expect managment of companies I own to give shareholders accurate information about the company, not to mislead them.
So I wont look any further into this company and its off my watch list now.