The AGM was held on 24th June. Notes by Simon Hedger/Mark Bentley:
- Contracts with O&G / mining companies discussed i.e. what are the key differences in bidding them compared to UN type contracts? CEO noted that they are very similar; the key difference being the end client risk as they are typically new clients rather than ones RA has worked with before.
- Capital requirements of larger projects being bid by the Group. In summary, the bigger the project the more working capital / CAPEX that may be required. Currently the Group feels they have sufficient capital but further capital may be needed if they won a handful of larger contracts. Chair noted that the Group are “ambitious” but equally cautious. With respect to increased CAPEX numbers since floating, the CEO noted all CAPEX (other than the Mozambique land – see below) is tied to the specific larger contracts that they are winning i.e. building infrastructure to deliver the contracts and often these contracts have “scope creep” (the client awards extra work post award). Nothing untoward.
- I asked the COO why they might lose…
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