Ann: Trading Update, page-8

not that bad of an update.
Making exact forecasts for an IT services company is not that easy.
Lets say we have a heads of agreement for an IT service.
We estimate it will start say on 1st March.
The heads of agreement have to be converted into a formal contract.
The lawyers argue a bit about the terms of the wording on the contract.

By the time the lawyers are finished the agreed start date moves to say 10th March.
For 10days we would have had idle IT start twiddling their thumbs waiting to start.
We couldnt assign them to other billable clients because they were expecting to start 1st March.

Very simple example.
But this would have thrown out their margins say for the month of March.

Most importantly for me, the 4th qtr looks like turning around, EBITDA at 14% is higher than it has been for a while.
If sufficient contracts have been signed and are now in execution, we may get a relatively easy FY19 1st half result.

Lets wait and see.

But at current prices, alot of bad news already priced in. It won't take much to lift the share price from here.

I topped up on the announcement and the 10% share drop.