Ann: Response to media speculation, page-10

"It would make a lot of sense for MND to be buying big though."

@overloaded ,

I couldn't disagree more.

When you have a demonstrated ability to create goodwill from building businesses yourself, like MND does, why would you pay someone else for that goodwill? (And then also have to take on the sorts of execution risk that goes hand-in-hand with one corporation acquiring another.)

And MND currently have Net Cash of some $220m. In order to undertake a $300m acquisition, the company would have to go into a net debt position for the first time in its life.

This sort of business - i.e., being capital-intensive in terms of the levels of performance guarantees need to be lodged by contractors undertaking big projects, and where demand for its services are deeply cyclical - should not be funded by borrowings.

History shows that getting stuck with debt when projects go into cost overrun is one of the most common ways engineering contractors come badly unstuck.

Conversely, having adequate liquidity and financial flexibility has been one of the factors behind MND's enduring success.

As a shareholder, I would not want that particular competitive advantage that our company enjoys, to be frittered away by some ego-driven corporate deal.

Personally, I don't care for companies I own to acquire other companies, because - in the overwhelming majority of cases - it involves a transfer of wealth, from the owners of the acquiring company to the owners of the company that is being acquirers.