Working Capital reduction initiative

The MG 150million (2017 - 100million) working capital reduction initiative had as part of it, to reduce bloated inventories.

I noted in a John Durie, Australian article on Bellamy's, the following statement:

"Inventories amount to at least nine months’ supply, and given this is finished product, it has a use-by date, even if this is some three years down the track. By contrast, Murray Goulburn had inventories totalling 12 months’ supply, which is now gone, but these were raw materials, not finished product, so easier to sell."

http://www.theaustralian.com.au/business/opinion/john-durie/emissionscheater-vw-changes-plea-in-different-countries/news-story/016ece8188c32004cf2f89a4da6f9ce1

"which is now gone" ... I hope so, it will go a long way to writing off the MSSP.

There was much conjecture after the MG AGM whether the MG farmers MSSP debt should have been recorded as an asset. Rest assured it won't be at the 2017 AGM. I expect it to be written off by then, lest it be recorded as a Provision for Doubtful Debt after the shifty on the auditors in 2016.