Ann: Trading Update to 31 December 2020, page-14

"There's also a nice bullet point in the Outlook statement, forecasting synergies of $3-5m achievable in FY22."

@Klogg,

You said you needed to hop off the call before the end.

Which means you might have missed what I thought was the most significant part of the discussion, namely the CEO's comments on synergies.

I'm not able to quote him verbatim, but the very clear gist of it was the following:

"Synergies are often hard to identify and to turn to account without any doubt, so to be conservative we avoid including them in our estimates unless we think they are absolutely bankable certainties.

In other words, $3m-$5m is the very minimum synergy amount we think is on offer, and there is highly likely to be more than that."

When I hear about a company going from 22 to 13 warehouses and offices, which will cause $2.5m reduction in occupancy costs alone, then I'm thinking you can multiply that $2.5m number by three or four to get to the size of the total synergy prize.