The whole thing looks to me like a mirror image of Hastie Group. Fictitious claims and unapproved variations buried in the accounts with minimum amounts declared in ye 2012 as being impaired when in effect the "unimpaired debtors" were growing at a faster rate than their sales - the alarm bells should have been ringing to every member of the board. Not to mention the amount taken up as intangible assets for software development for rail and signalling software which probably should have been put against the failed Fortescue job. Then consideration needs to be given to the goodwill balances - in particular Haden given its performance. What if the scheme of arrangement does not proceed has anyone recalculated the balance sheet to look at total equity. When will they declare the loses on the Fortescue job and where do they stand in relation to their banking covenants - there was a earlier mention but none since - not a stock I would buy.
NFK Price at posting:
50.0¢ Sentiment: None Disclosure: Not Held
