Ann: Business Update, page-5

A positive announcement indeed which should give the share price a kick along.

This is the first announcement issued by the company for quite some time and gives us some insight into the sales pipeline for the remainder of this FY.

The second Beijing wetlands project is presumably the one that was programmed into Newing's 17/18 revenue estimates that slipped and has now turned up in this year's figures. Worth $7m and described as huge, it provides a yardstick for valuing the remaining projects identified in the announcement.

If huge is $7m what is large...possibly $1m to $5m?

For China we now know the company is working on "a number" of large environmental and engineering projects that are expected to result in significant sales over the next eight months i.e. this FY. So, we can say there are at least two projects and most probably more, most likely less than ten. If there were more than ten then the company would have said it was working on a large number or very large number of projects. So let's say between two and ten of which they win three. That would generate between $3m and $15m in gross revenue.

On that basis the three large international projects would also be valued at $3m to $15m.

Putting these numbers together we get $7m plus ($3m to $15m) plus ($3m to $15m), or somewhere between $13m and $37m for this financial year.

With concern mounting about algal blooms and water quality and growing interest and understanding of PET's successes in addressing these problems we can expect these numbers to grow as the year unfolds.

Love that photo of the Beijing, it really says it all.