Well The outcome from NIHL will be good bad or somewhere in between.
Pitching 300 people at it since May last year would have to have had a point. Wilson research reckoned so.
"the directors havent altered their views on NIHL" and even if it is really really bad , the $60M pa wage cost on NIHL is coming to an end in 2016 as SGH exits from 90% of this activity. If the directors havent altered views,
why at this stage would the outcome be bad? The likelihood is that NIHL will make a material cash and profits contribution in the next 14 months. Certainly in Spring 17 overall NIHL outcome clarity likelihood will be greater.
They cant hide NIHL progress in Feb 17 In SGH and in WTG accounts . Aug might see clues in SGH or WTG accounts. In the meantime , since they have not altered their views, it seems entirely reasonable to expect NIHL to deliver a material net +ve cash contribution.
Wilson research pointed at a slow down in case takeup so, over a case cycle , WIP wrtitten off will deliver a supernormal gross profit margin and a material +ve net cash contribution.
I quite like 2 material cash +ve contributions . If there are 2 material cash contributions coming, why wouldn't you want that to play out before adjusting bank facility or new equity.
Still havent found Joubert.
Mel
SGH Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
