Ann: FY16 Earnings Guidance-SGH.AX, page-64

1) Why would you assume it has to completely repay its debt? In is FY2015 Annual report it said the Company wants to maintain 30-40% gearing, and whilst its gearing ratio would be subject to the banks approval, I can't see them insisting on zero gearing. Also you are using an EBITDAW number based on the Company's turnaround point. It wrote off ~$900m last reporting period so would you really extrapolate repayment of that debt based on this current earnings season. This is a turnaround and it will take time, people seem to be missing that point.

2) The company won't be paying any dividends until it gets it debt to some desired level. Therefore, earnings from its UK operation, which account for 3/4 of overall revenue, don't necessarily need to be repatriated into AUD. There is no actual FX Translation loss, it is just an accounting entry. This is the very reason why Company's that have offshore operations borrow in that currency, to eliminate or reduce/manage FX risk.
The consolidated earnings are reported in AUD for reporting purposes, but the company will most likely be retaining its GBP earnings to pay off its debt. So in the interim (until debt is reduced) who cares what the exchange rate does. You just need to understand the FX Translation adjustments and what is real and what is an accounting entry.

3) Agree with this point partly. I have some confidence we already have a new Group CFO, and the Company won't be rushing out to complete any more acquisitions for a while. I would like to see more information on how some of these problems could not have been foreseen. In any case, my SP entry point accounts for all of that so I'll give them a run for my money.

Onwards and upwards.