Ann: Cardno Provides Market Update and FY16 Guidance, page-124

This is a very interesting period of time for this stock, having looked at CDD in depth I make the following observations.

Whilst there is now breathing room (albeit marginal) over the debt covenants, management has by no means started proper implementation of the strategic review. Rightsizing staff numbers in the absence of sufficient work or selling off under-performing assets are standard operating practices in the service industry and not overly strategic. Real action comes into market focus particularly in the US and Asia(which was strangely absent in the Strategic Review), so I'd be more bullish if this was happening. The other key feature was the implementation of an offshoring strategy - to Bangalore and the Philippines. To date no no observable actions and to me these are the transformational activities that need to be delivered to drive stock prices forward.

I'm also interested in some of the management changes - 2 new execs in the US, which has seriously declined in an improving economy and the move of the former US executive to Australia.

To date we've seen shuffling of the deck chairs and some refinancing of debt, without the overarching and much needed operational reform. Something for the new CEO and Crescent Board to ponder.