Another downgrade, unsustainable debt and still very vague on the ASC contracts, which is the whole reason they are pushing the business to the brink! It's all about a strong sale of the NZ business now, and keep in mind that will reduce EBITDA 60m. To call the NZ a motivated seller would be an understatement, surely this will effect the amounts buyers are willing to bid.
I get that maybe guidance moving down is a result of changing the sales channels which might lead to better business later on, but they have been downgrading for 18 months now. It's a bit rich to try to sell another downgrade as pursuing better business practices after abysmal performance for an extended period of time.
It's still a hold for me because they have the NZ 'out' in their hand, however it is getting increasingly clear that the current CEO and Chairman are on borrowed time. It is clear with hindsight the CEO should have been moved on after the failed integration reared it's head last year. Boy were M2 shareholders lucky, and it is incredible that the Chairman and CEO are from that declining consumer business.
VOC Price at posting:
$2.62 Sentiment: Hold Disclosure: Held
