How could the board not know!!!!25 May 2012 15:36
How strange that the board did not know what was going on or that they didn't have a clue when the year end numbers were finalized or at the very least by the time the interim numbers were out....
If the board didn't know then what about the CFO???? how the hell didn't the auditors pick it up???? losses don't just pop up like that- in 2010 they announced the 27M contract..... so if the contract was 27M, + loss of 14M = costs of 48M.... It would be nice to know how much of the loss is actually earned and how much is future.... It is too easy to blame the outgoing CEO, perhaps a case of cleaning the books for the new guy...
this one was swept under the carpet me thinks!!!!! Serious questions must be asked... With similar problems in Lamprell and Pursuit Dynamics time to overhaul the board and senior execs.
Anyone who understands project construction knows how the project will perform very early on!!!!! Perhaps a case of weak project management, but then again someone should have picked up on mounting costs against a disproportionately small revenue (You have to wonder what the auditors look at????)....
In any case, this stock will be back up above 300p in 2 to 3 months (if not earlier), solid company with solid people... Well respected track record, sometimes things just go wrong- the company should do better at giving bad news in a more timely manner....