I thought I might go through some numbers on PPX to see how it is tracking to get an idea of where it is headed good or bad.The areas I looked at are business sale proceeds repayment of debt and restructure costs.The emphasis is debt level left and how much money used to restructure.Repayment of debt on sale Italy A$40mln,USA A$40ml and A$20mln further use of funds.They said initially they needed (22/2/12)A$41mln to restructure and already put through accounts $17mln($14mln+$3mln) leaving A$24mln needed.Announced on 26/6/12 restructure needed A$34mln and working capital needed A$33mln($23mln Europe+$10mln Aust)
Total debt 31/12/11 A$318.2mln (current $224.9 + $93.3)take off repayment A$100mln I suspect left A$218.2mln.
Two things I see here is that restructure costs are blowing out above original estimate and why do they need on top of this A$33mln working capital this could be to cover further losses?
Maybe it is a good sign that the restructure cost is more in that they are really reducing costs in relation to reduced revenue?
At least they are taking action but they probably should have done this 2 years ago?
Add to My Watchlist
What is My Watchlist?