Observations,1) They mentioned "tightening the belts" while...

Observations,

1) They mentioned "tightening the belts" while times are tough.
Mark my words, senior mgt will not be tightening any belts when it comes to their packages.
My guess, their will be pay increases and they'll blow out their snr mgt figure from 4.2m to closer to 5. Go back to this post after the next annual to see how much snr mgt tightened their belts! Close to 5M, with an expected 10M NPAT!

2) They put out the line of "broker consensus is ...". Personally i want to know what the consensus is from snr mgt at times like this, not broker consensus.

3) Hats off to them for managing expectations of holders, however how bad is it that they notify the market about seven months early? Or is this a softener for the half yearly?

4) The line of, don't worry follow your gut, without taking into consideration margins is crazy.

If you break down the business into,
1) Consulting
2) Construction
3) Mining and infrastructure

Consulting actually had negative margins.
This means that they win jobs, but lose money at about negative 3%!
Construction was head above water at about 2%.
Number 3 had good margins and kept the business alive.

The game is about cash hitting the coffers, not just winning jobs and their is a distinct difference.

Are all other peers facing the same fate with no wins? No, therefore they need to look closely at their new business team and not just scapegoat on ambiguous federal elections

Does this have a tail and bark?
Far from it and looks to be a good punt with the large volumes of work for late 2011, likely to be awarded first qtr 2011, as long as they can produce a profit.

Mgt need to pull this together.
The CEO was appointed in the first qtr and should have articulated a plan and be in the execution phase.
He has a mining background and this is the space of good margins for VMG.
Let's see some results as right now we have blue sky and forwards that mean zip.
Mav