Ann: Daily share buy-back notice - Appendix 3E, page-49

What can I say? I can confirm they have a 30% turn over in NSW, VIC and some pressures from previous senior employees who have "persuaded" staff and clients to leave with them. I was also told that some of the results are being propped up from previously undeclared profits (hidden within business units). Some staff have left and immediately started in competition - I'm told especially in the Environment Economics side. There still appears to be an absence of anything remarkably strategic and "everything" is being left to the local division managers who don't exactly have the confidence of their teams. Thats just the reporting from my discussions with colleagues.

For the record I work for a competing firm and am based in the Middle East though have a lot of connections as I worked in Australia for quite a few years.

My own view is that Cardno is no different from any of the Australian based firms who have not had to adapt to the global realities of working in international markets. The are not particularly bad or good. The upside is with a modicum of strategy and some reasonable management they could actually be a very profitable business. I'm expecting them to be gobbled up by a larger firm and Crescent to disappear off the scene inside 18 months so hang on to your holdings. DYOR, thats just my humble view.