2016 Financial Year Interpretation

Dec 17 (Reuters) - Slater & Gordon Ltd : * 2016 financial year update * Says there is a significant risk that full year guidance will not be met * Says company expects that the UK business will make a positive contribution to gross operating cash flow in December * Says company withdraws its previous full year guidance * Says withdrawal of guidance reflects the fact that whilst cases remain available for settlement in the second half * Performance of UK business expected to contribute positively to cash flow in December and during the remainder of the financial year * Has more than A$100 million headroom within its banking facilities * Says company will test its goodwill values for impairment of the UK business at the half year ending 31 December 2015 * Headroom is expected to increase as the financial year progresses" * Impairment review will take into account matters including risks associated with proposed changes to law by the UK government which may not be enacted either in current form or at all" * Says any impairment will not impact cash flow from operations but will impact statutory profit * Says UK operations during the first half has not been in line with our expectations * Source text for Eikon ((For more news, please click here [SGH.AX])) ((Bengaluru Newsroom; +91 80 6749 1130))



I only understand that in summary that:
(-) withdrawal of guidance with significant risk that full year guidance will not be met;
(-) full year guidance pending outcome of review (In the past, they reaffirm guidance by saying how confident is SGH for the guidance set, but now one month has past, we are nearer to see the report card and we were told that they are not sure about the guidance, what a BS)
(-) lower than expected results for first half (in the AGM, it mentioned first half will be negative cash flow of 30 to 40 million, sounds like now will be even more than that, but they only have 100million headroom, if there is any bad months ahead, they will run out of cash).

I would like to know what is your interpretation of the 2016 financial year update this morning? Please no personal feeling and emotional post. I already feeling so sad that they disappoint me on the guidance which they have reaffirmed few times. Bad Christmas for me.