okay wots goin on ????????, page-24

dr vertigan, the former victorian treasury secreta Winning pair vs Tatts four of a kind
Richard Gluyas
22nov05

TATTERSALL'S has papered over divisions that led to a board restructure at the gambling giant, at the same time recommitting to profit forecasts in its prospectus despite a "soft" start to the new financial year.

Facing certain defeat in his bid for re-election to the board at yesterday's inaugural annual meeting, former trustee Peter Kerr withdrew over the weekend, allowing businessmen Michael Vertigan and Julien Playoust to be elected unopposed.

Dr Vertigan, the former Victorian Treasury secretary, and Mr Playoust, secretary of the beneficiaries' committee in the lead-up to the Tatts float earlier this year, had campaigned hard for more independent directors.

However, Tattersall's chairman David Jones insisted after the meeting that he would still have a "constructive" relationship with both new directors, despite continuing litigation and the board's support for Mr Kerr.

"Yes, I do think we'll have a constructive association with them. They're known to me personally for many years," he said at a press conference.

Tensions between the Tattersall's board and its two new directors have been fanned by court action that will determine how much the four former trustees, including Mr Jones and Mr Kerr, receive for their role in the float and the winding up of the George Adams estate.

Mr Playoust has spearheaded the case on behalf of beneficiaries, and his offer of an $8 million settlement to the four last September was spurned. It compares to a $71 million provision in the Tattersall's accounts.

Mr Jones agreed yesterday that serious allegations had been made against the trustees in the court case.

"But that is before the (Victorian) Supreme Court," he said.

"We haven't asked for any amount. We'll wait on the (court) early next year."

Tattersall's chief executive Duncan Fischer said the group was still looking at how to spend the $300 million raised from its July float.

The company slightly outshone its 2005 earnings forecast in its prospectus, reporting earnings (before interest, tax, depreciation and amortisation) of $247.6 million, or $3.6 million more than expected.

Forecast EBITDA for the current financial year is $228.8 million, mainly due to the cost increases that have come with higher gambling machine levies in Victoria.

"Whilst the gaming market has had a soft start to this financial year, our performance so far shows that we are on track to achieve our forecast profits for 2006," Mr Fischer said.