investment thesis, page-7

Debtor days is a product of actual collection performance but also contracted terms. In light of the later 44 days might be good if the Gross Margin SKE achieve on the contract takes the "banking" role into account.

So low teens GM on contracts with 30 days End of Month (given rise to the ugly mid 40's debtor days) would be a disaster, but if you were pulling GM's in the mid 20% then, credit risk aside, it might not be such a bad deal.

As with most things there are lots of reasons why the numbers produced, are the numbers produced, and what might seem like a bad result, may in fact be a better NPAT result for shareholders than otherwise the case.

I don't know if this is the case for SKE, or even if it is part of their strategy, just thought it worthwhile pointing out.

All things aside however, I am also excited about the free cashflow that will be generated here and will look with interest how the team will deal with it.