Cause and effect?, page-7

Does the looming retirement of Steve Recht as CFO of Aconex (ACX.AU), which
provides IT systems for the construction industry, stir up questions around accounting
practices? Undoubtedly the short thesis around cash conversion and even rebates will be
revisited, Morgan Stanley says. "Our view is very clear, there is no long term
upside for Aconex in dressing up near-term performance (considering the founders and
largest shareholders have been working on the business for 15 years)," the broker
says. "Also, Aconex explicitly guided to receipts greater than revenue (highlighting
an exceptional cash flow profile matched by few business models) and Ebitda expansion
from 3% in FY15 to 17-22% in FY18 (implying any rebates are clearly not doing too much
harm to profitability)

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