going long, page-9

Just looking at the Dec 2013 P&L as i want to look at the profitability of the actual reported figures before relying on the management forecasts. The company reported a loss of $40.197m and a loss of $37.1m after a taxation benefit of $2.26m (keeping in mind that over the long term taxation benefits are only of use if businesses continue to make profits)and a few other adjustments. Of this loss of $37.1m there was impairment expenses of $33.345m (non cash item) which were right downs of goodwill, property plant and equipment and other items following loss of contracts. If we reduce the loss by the impairment expense of $33.345m on the basis that this isn't a recurring item and is not an actual cash outflow (although it does relate to impacts on the business in the future, hence the asset adjustments) this still leaves a loss of $3.755m. Management commentary to the half year report also mentions a further $11.4m in costs from the Mona Vale Accident, however this seems like a large cost to assign to one incident of this nature. It is noted in the report that the accident caused an increase in inspections of vehicles and fleet downtime for the inspections and rectification of faults. However the question is if this is actually a once off expense or will there be a need for an ongoing higher level of maintenance/inspection expenses to maintain the vehicle fleet. It would be good to clarify this as it would assist in establishing whether or not the business had an underlying profit or loss in the half year as it will assist in then looking at the subsequent management forecasts and their reliability. Any other thoughts would be appreciated. Are there any other areas that people are aware of that would have impacted on profitability in the half year?