The final payment is being delayed due to cash flow constraints...

The final payment is being delayed due to cash flow constraints in FY18. So if they don't have better cashflow in FY19 they won't be able to pay for the cable. So the project is being delayed as if they could afford it, they would pay now and allow full construction to be completed. Think of it this way, if you were the cable company, would you accept 70% of the construction cost of the cable in a lump sum in FY19? Especially if there was no certainty of payment. There is credit default risk on the payer here. Its like building a home and instead of paying in progress payments at each stage, the borrower says ill pay you 70% at the end. No builder will do that. Management is trying to spin this as a deferred payment but its not and it aint a good thing. There is underlying risk here.

Capex is not 20m less. In FY18, capex is expected to be $190m - $210m (excluding the ASC capex). In FY18, ASC capex is expected to contribute $38m in capex i.e. total capex of $190m +$38m = $228m. FY17 total capex (inc ASC) was 217m. Hence, capex will increase by atleast $228m - $217m = $11m. This is also at a conservative figure. It could be $31m. I also don't see how working capital will improve by 91m. That's a shit load for a company that has increasing account receivables and some of these have gone bad as per page 73-74 as they have been written off i.e. revenue not received from bad customers.

Mate spin it however you want. I said in May the dividend would be cut as i could not reconcile the cashflow for all the projects and i still can't based on the new figures. Everyone was against me before the takeover offers. I was not a believer then and still not as the numbers don't stack up. Back then i also mentioned the AMPU for Vocus not adding up. Well guess what, that has also been revised and their margin has deteriorated. Vocus is not this almighty superior streamlined well oiled machine. Its a sub-par telco company in a sector that is experiencing significant cost pressures. Without the ASC Vocus has no competitive edge over TLS or TPG. Without a competitive edge, a company becomes sub-par in a sector. It also does not have significant cashflow to improve services or invest in other projects. Sadly we were all duped and sold Disallowed on this company 12months ago. They way over-estimated forecasts based upon combined merger numbers over-inflating revenue growth and EBITDA growth. Heck, in FY18 NPAT will be lower than FY17 due to increasing interest costs. Shit man, its pretty average.