There is $9m tied up in working capital that is going to come gushing back as cash. This thing flows about $20m of cash per annum even during bad years. The workload is now underpinned by the NBN fiasco, plus mobile capex spend, then the next round of smart water metering, plus some impending LED lighting work in the pipeline. $80m is tied up in accrued revenue which is work done but not invoiced yet. That alone makes up 80% of the market cap.
$90m MC plus $10m of net debt versus $20m of cash per year. That is an easy 20% cash return per annum, assuming there is no improvement whatsoever.
SSM Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
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