In my opinion I think the dividend should be cut to zero over the next 2 financial years. Advertising scaled back over the next 6 months. Employees working on cases to full capacity.
We are in a period of uncertainty with the UK governments. Reducing debt should be highest priority. Fast tracking all existing work to its highest levels is a must.
Not for a second I think the company is going broke. Need to strength the balance sheet so whatever reforms do come in, SGH will be a stronger beast ready to take on the UK market.
Preservation of capital will be needed. Long term shareholders buckle in and enjoy the ride.
PS. I wonder how long Revenue from Nihl can be withheld from Quindell? Longer the better!
SGH Price at posting:
$1.00 Sentiment: Buy Disclosure: Held
