"I am pleased that the group would have significantly exceeded our profit target for the period, if not for the impairment of the AAI receivable." commented Managing Director and CEO, Terry Stinson. - quote from release of HY report.
The amount AAI are refusing to pay is 1.625 million. All that is said in the HY is that Orbital believes it has fulfilled its commitments. Does anyone know why AAI are refusing to pay. It worries me that the HY does not elaborate further other that to say that they are pursuing the matter and there will be no further income from AAI unless the matter is sorted out. It did not sound very good to me.
The announcement of the UAV contract with Insitu (a subsidiary of Boeing) looks good but the timing looks like it is there to offset the loss of AAI. The lack of any detail on the AAI issue sort of implies Orbital may be at fault (as I see it). This feeling is reinforced by the fact that the HY was released after the market closed on the final day of reporting - nearly always a sign of a bad outcome.
OEC Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
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