Analysts and industry fear worse to come with Leighton

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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