Positives for SWM during Covid, page-29

Ozjo, I do not believe they received job keeper.

Mr Warburton stated they would apply if meet criteria. I doubt revenue fell 30% min to meet it.

no announcment from swm farther fortifies no job keeper.

That is good as it means swms revenue has not eroded as much as investors feared.

I'd rather they cut costs to pay down debts versus selling assets.

Im sure if they go to the banks near the end of next year with 400m debt or less.

I'd think with present asset sales, capital reduction, expenditure cut they would be around 500m already.

Then 87m saved on the afl could further reduce it, I don't know the ins and outs of it. But 87m is 17% of debt if presently 500m on just one deal. .

Remember if there paying the banks and if they have gone from 650m to 400m the banks will see less risk.

Remember the banks profit and if they did not rollover, they loss that profit.

Swm should have 200m ebit and 400m debt this time next year if there cost cutting targets are meet and revenue holds.

Interest would be sub 20m pa, 10x coverage. That is very healthy to me.

The problem with selling the studios is they loose control of production and become a client to a producer of there own content. Extremely Bad move.

Selling assets that generate profit, will reduce debts, but it also reduces profit.

We don't want a shell with no debts and no business units.

The asset I hope they sell is the wa papers as print media is finished if any.

Then use part of proceeds to may down debt, rest to try and merge with prime as that would reduce Gearing as prime debts are low, boost revenue and reduce costs as % of revenue.

I think swm can wipe debts in 2 years without asset sales if they scrutinise every dollar spent and drive real hard deals of 10m hear, 20m there on contracts and programming with a prime bonus.

They have over 1b revenue so plenty of money at the top to hack expense out.