Hi Pioupiou, The revenue prospects do look good and are...

Hi Pioupiou,

The revenue prospects do look good and are ‘visible’ which leads me back to the margins again.

Some fairly obvious ideas around drivers that have been mentioned are:
- evolving tender competition levels
- growing labour market tightness
- mix of work (mining vs civil)
- mix of hired, client or owned equipment
- avoiding project stuff-ups

There are lots of moving parts to the margins over the next few years and I think it’s very hard for anyone (including the broker analysts) to really make a good prediction here. For that reason I think the market will double 2018H2 numbers as estimates for fy19 and 20.

I take some comfort from 2011-2013 where in the face of some similarities in the labour market and work available, NRW kept margins in reasonably good shape (they reduced but not by much).