The positives, page-3

For me the biggest positive is this:

"Net debt at 31 December 2015 was $5.8 million reflecting seasonality of working capital in the Labour Hire business, and is comfortably within the Company’s current $15 million debt facility limit. Operating cash outflow, including capital expenditure, during the first half was $12.0 million, due partly to a temporary increase in working capital at the end of December 2015. Net cash outflow, following payment of the final FY15 dividend in October 2015, was $10.2 million. Second half cash flow is expected to be positive, benefiting from a moderation of the working capital peak and review of capital expenditure plans, particularly investment associated with the expansion of the international......"

ASH has weathered the storm that has taken out major competitors. The competitive field has cleared presenting real opportunity, especially with the easing of govt support for TAFE and public training.

Part of the negative cash result is due to investment in some areas tipped to be big contributors to growth in the Aussie economy (e.g. international students).

Expecting improvement going forward including positive cash flow, I don't think Cummings is the type to over promise like his predecessors.

Most negative impact seems to already have been priced in, not hit its lows yet from a few weeks ago.. and remember new CEO hasn't a stake yet. Not surprised to see an unambitious announcement as he likely looks to take a position in his new company. Certainly wouldn't be the first time it's happened.

Onwards from here! very positive about this in the medium - long term but need to start seeing some positive momentum during the coming year