Slater and Gordon boss won't quit, page-14

First 14 Last

Successwillcome

2,060 Posts.

312

31/03/17

10:24

Post #: 23762250

Originally posted by Grant62 ↑

Equally, dear, dear friend, most other law firms /allied professionals pay their debts, pay their interest and pay back their loans. What say you re: SGH? Oh, but of course, it's all historical and it's all of no relevance and management and the board are the makings of the second, third and fourth comings. Pity then that they can't pay their interest, their borrowings or their debts. And so, in history's past lies future's failings for, as so many who have come before, if they keep on ignoring the lessons that history has there to teach them, then future's present will invariably be tomorrow's failing.

The argument about paying back debt is also not quite right as the following chart suggests (based on the cashflow statement);

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12

1 Year
F7
F8
F9
F10
F11
F12
F13
F14
F15
F16
H17

2 Borrowed
7
6
12
8
34
89
34
155
594
193
-

3 Repaid
9
1
-
4
23
32
92
74
44
45
1

4 Net Repaid
2
(5)
(12)
(4)
(11)
(57)
58
(81)
(550)
(148)
1

5 Net Repaid
Yes

Yes

Yes

A very long time between drinks, one would think. And equally, not a great track record of repaying or paying down debt, not by any stretch of the imagination. In the 10+ years since listing, SGH has only managed to net reduce its debt (according to cashflow) in 2 reporting periods – F7 (immediately before listing) and in F13. Yes, H17 has shown a net repayment also occurring by the tune of $1M on account of several HP contracts that went current in H16, onwards.

Your third step being:

3rd step is to continue paying down our debt and continue our organic growth in the UK.

is entirely contradicted, refuted and, quite frankly, failed. Couldn’t even pay their interest bills in H17 and barely paid back $1M in debt on account of several HP maturities.

Expand

Like I said Grant.

If I had a lawyer firm competing with Slater and Gordon I would sell NOW.

AG is coming

SGH Price at posting: 13.0¢ Sentiment: Buy Disclosure: Held

5 Upvote

0 Great analysis

Top Stories

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

PFE

Pantera begins drilling of maiden test well at Smackover

C29

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

QHL

Aerospace smallcap Quickstep Holdings jumps nearly 100% after 40cps takeover offer

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

There are more pages in this discussion • 27 more messages in this thread...

First 14 Last

Add SGH (ASX) to my watchlist

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9	Column 10	Column 11	Column 12
1	Year	F7	F8	F9	F10	F11	F12	F13	F14	F15	F16	H17
2	Borrowed	7	6	12	8	34	89	34	155	594	193	-
3	Repaid	9	1	-	4	23	32	92	74	44	45	1
4	Net Repaid	2	(5)	(12)	(4)	(11)	(57)	58	(81)	(550)	(148)	1
5	Net Repaid	Yes						Yes				Yes

Slater and Gordon boss won't quit, page-14

Top Stories

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Pantera begins drilling of maiden test well at Smackover

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

Aerospace smallcap Quickstep Holdings jumps nearly 100% after 40cps takeover offer

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Featured News