Gunnu clearly the poor cash flow last year reflected cost incurred and the lack of payments from John Holland. I tend to agree with your logic, but I am a bit confused looking at the accounting treatment in the annual report.
Trade and other receivables rose by nearly $10 million at June 30 2018 compared with the previous year, which could reflect amounts owing from John Holland, but it could just reflect higher revenue last year. Page 9 of the accounts says due to " an additional cost provision being made to a current road infrastructure project, Valmec’s total grossmargins were impacted during the year."
It is probably worth clarifying with the company which I will attempt to do.
VMX Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
