SGH, page-98

Jim, Mr Grech said at the 2015 AGM briefing that debt/equity ratio at 43% was above their preferred level and will get it down to 30% through converting WIP (worded to the effect of not going to look for verbatim quote)

S&P index rebalances happen every quarter. March, June, Sept, Dec - at April 2015 SGH was on the verge of admitted to ASX100. It wasn't in the inde until the rebalance In June 2015.

As you say I should have known that, it looks like I did!

Also thought it would be interesting to recap some broker (who were covering the company) quotes from that time April 2015.

What do the brokers think?

UBS has taken a positive stance on the new look Slater and Gordon with analyst Jack Briggs noting the group will become the largest player in the UK personal injury market with a share of 12 per cent and enjoy the added benefits of first-time access to the insurers and insurance brokers customer acquisition channel.


Briggs also said, “There is a high degree of conservatism in Slater and Gordon’s EBITDA estimates as no synergies have been assumed, and case assumptions also look conservative relative to current levels".

UBS upgraded its recommendation from neutral to buy and increased the 12 month price target from $7.45 to $8.83.

Deutsche Bank was also upbeat about the development, but Dominic Rose noted the relatively high transaction multiple. However, she echoed UBS’s comments in saying, “Upside potential exists from improving the business and extracting synergies".

Rose has a buy recommendation on the stock with a 12 month price target of $8.20, but this is likely to be reviewed once the deal has closed.

Morningstar is one of the more bullish in terms of assessing Slater and Gordon’s robust position within deregulated and highly fragmented markets, and this is reflected in its fair value estimate of $10.00.