re: new com's contract The sale process for Comms was put on...

re: new com's contract The sale process for Comms was put on hold when they entered into negotiatons with Lockheed Martin re the contract between themselves, and presumably if the division is still to sold then the process will not recommence until after that contract has been signed off.

As the contract had something to do with American home security any open due diligence under the sale process would have allowed anyone in to look at their books evaluate the value of the contract and the technology. Hence the stoppage of the sale process.

Yes Comms may well be profitable now with these new contracts but work in that division is extremely lumpy so it will go through phases of good profitability and poor profitability. In my opinion Redflex is not really big enough to absorb these sorts of on off runs so Comms would in reality be better suited to a larger company cabable of withstanding such variable work loads.