Excellent analysis again Capital3157. I like your work. You...

Excellent analysis again Capital3157. I like your work. You should give up your day job and focus on EGL.

Like you, I am at a loss to understand how they have accounted for TAPC.
It is a matter of record that TAPC has won a $12.9m contract with Hastings Technology in WA. That project will be completed very shortly (EGL announcement 18 February 2020 - HAS project mid 2020; HAS announcement 31 July 2020 - 96% complete) and should be fully brought to account in H1 FY21. Historically TAPC has secured robust gross margins. The Hastings Technology project should contribute GP in the order of $3.9 - 5.2m.

The only question is into which period, FY20 or FY21, will the majority of the revenue and GP fall.
Given EGL has forecast a loss for FY20 you would hope that prudent management will ensure that the bulk of the contribution is recognised in FY21.

As you note Capital3157, EGL's forecast in aggregate for FY21 seems very conservative when you undertake an analysis of the announced contract wins and revenue forecasts for each of the individual business units, Baltec, TES and TAPC (G&V).

Indeed, let's hope EGL's Board and management have learnt from their past poor forecasting record and dismal stakeholder management and have been very conservative in their forecast of record revenue and profits for FY21

IMO
DYOR
Clare