MR MAN, You are 100% correct in what you saying in reference to accounting treatment.
however this type of treatment would only occur on larger projects that where multi year. I would say something in the order of 20Mil+. While companies such as leightons would be highly effected by this. Hastie's companies are smaller and broken up and less likely to take on those jobs. Hastie's Australian company base are mostly service companies or small installation companies.
Given there current overall margins where in the order of 3%. I would say in some respects some of this is already being realised. Service business are unlikely to have 3% margins. However you got to see given the current conditions in the building industry one of the biggest risks with hastie.
HST Price at posting:
26.5¢ Sentiment: LT Buy Disclosure: Held
