Analysts and industry fear worse to come with Leighton

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Analysts and industry fear worse to come with Leighton. Leighton pulled the trigger early on reporting season delivering it's half year report yesterday. The headline number of NPAT $291 million was of little interest to many analysts who are unable to get cashflow to match with the P&L statement. Operating cashflow came in at a meager $78.5 million with the difference between this number and the reported P&L causing concern about the bulging receivables figure. One analyst reports, I believe several projects have major problems and will need to be addressed via the accounts over the next 12 months. I remain very cautious around this name. Another source from a rival contractor says, We place huge emphasis on NPAT to Cashflow at 1:1...and a lot of focus on growth in WIH. Some ominous signs and perhaps not the end of it here. Read the Leighton results here: (VIEW LINK)


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