Yep your assumptions on the bore core work are spot on.
and yes this represents about 5% of the 8M (approx) of additional revenue the company has forecast for 06/07, so it's a nice start. this type of work is very specialized niche technical services. I would imagine the margin on this contract would be pretty good. I understand with some Pope contracts (not this one) the company has been able to share in the benefits of the cost savings brought to the customer by this sort of work. I am led to believe this born out by the 3.5M of "dividend" payments recieved in the operating cashflow statement released as part of the 4E report. (although i havn't officially confirmed what this 'dividend' amount relates to as yet.)
Regards,
Cheerful.
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