Looking at the half yearly, first glance the International...

Looking at the half yearly, first glance the International business made a loss of $3.74m (p19) compared with a small profit for the same period last year.

However an Impairment charge of $3.4m (p35) was attributed to the International business. I thought this charge would be excluded from the EBITDA, however it is included, so the International business really only lost $300k cash, considering it was most affected by Covid, this was a good reult. The company also received $2m of government grants etc, most of this money was attributed to the domestic operations.

I doubt this will be repeated, certainly not $2m worth.

I also noted Site Skills Gp domestic had an asset valuation of $4.2m which pretty much equates to the sale price. I can’t find the figure, but in one of the court case transcripts SIT revealed how much it would cost to wind up their Australian operations, it was quite considerable. I note in theis deal the staff are treated as an asset & are part of the sale, so we should have very little wind up costs.

Also of interest is Clark was shown as having an asset value of $19.5m with the following note

The recoverable amount of the Clark Property development CGU of $19,550,307 as at 31 December 2020 has been determined based on the cash generating unit’s value in use calculation using projected cash flows from financial budgets covering a 5-year period.

So in other words, it’s not valued at market value, but valued by the cashflow it’s generating. The only income generated by the asset is SSG’s international training which was wound back & during covid, it was also used for providing residence to the BPO industry (stranded by covid)

If the market valued us at 17c prior to the sale, I think we must be worth a lot more than that with the sale of the Domestic operation. If we win the Bahrain contract, we’ll need the cash to put in a SLPP facility there. If you haven’t seen the video go to the link below & watch the short video, it’s very impressive.

https://www.site.edu.au/about/capabilities-video