Ann: FY18 Half Year Results Announcement Date, page-26

Trying to piece together what you're saying:

We've been on the merry-go-round discussing WIP for the last few years, but my understanding is:

	Column 1	Column 2	Column 3
0		Income Statement	Cash-flow Statement
1	Revenue/Customer Receipts	Year work is done	Year customer billed (after/if case succeeds)
2	Employee Expenses	Year work is done	Year work is done
3	Other expenses	Year money spent	Year money spent

So all money going out is spent as we go, but cash only comes in when/if we win and the customer pays their bill, which might be years after the expense to do the actual work.

This view (if correct) would somewhat contradict Ashley's post as I would have thought that employee effort spent creating leads is recorded as an expense in the year the work is performed on both the cash-flow and income statements. Perhaps I've simply misunderstood the original post.

Obviously a weakness of no-win-no-fee is that we pay costs on leads that go no where and also unsuccessful cases but receive no income on these. None of these facts by themselves indicate that the company is overvalued by the market.