Ann: Half Year Results Commentary , page-4

The report is actually not as good as I was expecting, but the market seems to like it. Cash flow should be less impressive in coming reports as there is not much left to squeeze out of working capital. The one expense area I would like further information about is 'materials subcontractors & travel'. The rise is much heavier than the rise in revenue.
I appreciate that subcontractors are a much more flexible resource, but if they eat the margins with their higher cost, then an equivalent 'direct' employee might be a better option if the new revenues are thought to be recurring.
If the restructuring costs & impairments are overlooked, you would be hard-pressed to find any metric that wouldn't describe COF as being undervalued I think - Eternalgrowth