Lenders force SGH to restructure, page-232

Mike

Nothing grim in Scotland except our front 5, really scary ! , looking forward to 4pm saturday. I openly admit putting positive spin on calcutta cup is difficult if prognostications are wrong and the dream result does not EVANTUATE.

Sun shining people smiling jollyness all round Caledonia actually.

Half year report. Well reports do need to be interpreted. Lets see. SGH set out to process 52000 HL cases ,,,,,that would be cash negative? So SGH at half year cash negative,,,how astonishing?

SGH OZ EBITDA YR to June 16 = $132 m ( same as last year?)
SGH Motor claims EBITDA to June 16 $ $150M
Total to June16 EBITDA $ 282 M ?

WRONG by 15% ? who cares - plenty for I and T

Now HL is an exceptional item so not included but its fair to expect $20M for EBITDA to June 16.

A Year later HL will be gone and the cash tied up in it will be back.

I spent 8 years as an investment banker and I am a dutchman if there are not 3 bits to the Bank lending.

1, OZ
2. UK Motor Claims
3, Temporary for HL Claims

and Noddy could have told you 3 (HL) had no prior success rates statistics,,,,,so time to process/success rates/ cash flow had uncertainties.

1 and 2 SGH could have statistics backed surefootedness in the business plan. HL Not so but its temporary and when its out of the system it should ensure $40M sticks to SGH.

If Satelite fleet building can be debt financed where you have to book launch and divy cash up 3 yrs before sat launch and 6 years before profits flow.....HL going slow in the 1st 6 months would be an easy problem to identify and fix.

Mel ( unbearable at 6pm sat if it goes to plan)