mixed feelings, page-11

Acaca15

Excellent post. I have come to the conclusion over the last year that businesses that go on acquisition spree's are often trying to acquire what they don't have within their own business model namely the capacity for real organic growth. Growth through acquisition can look good initially especially through a period of bouyant business activity but over time the true picture emerges.

Your point about a significant part of the debt reduction and high OCF coming via a "one off" balance sheet movement in FY10 is very relevant imo.

Cam

Whilst they can certainly payout dividends from this level of lower Cash Earnings I am not convinced its enough to reduce debt.

NIBD as follows over the last 5 half years attests to this fact.

June10 39.2m
Dec10 39.7m
June11 31.2m
Dec11 43.4m
June12 40.8m

I still don't think WHG's balance sheet is best described as in "fine fettle", the largest line item is Intangibles that are probably worth 10c in the dollar of their current book value. Tangible equity is minimal

This business is a cigar butt, you can hold it and get a few more drags out of it via dividends but don't expect any growth. It will likely continue to trade around a yield type valuation with little up or downside as long as the dividend is paid.