Disappointment with PAC reaches a new level

I wanted to share my thoughts with other PAC investors, the communication that I sent today to the PAC Chairman.

Dear Chairman (Tony),

Having now read the half year financials for PAC Group, it is with a great and worsening sense of frustration and disappointment that I write to express my dismay at the following:

• Further write downs of $6.052m (Impairment of investments), and
• A new provision for an estimated liability for Nereus Holdings LP of $7.688m. What is this?

Shareholders in PAC have had to stomach year after year of hollow promises that the PAC business has "turned the corner", "there are better times ahead" and a more focused management with a simplified structure to the business etc. We are tired of the drivel and pathetic results, in what has been an incredibly supportive market environment for financial services businesses for many years now.

Managing this business and converting all the colour and movement to actual shareholder returns seems to be as elusive as ever for this business and its handsomely remunerated management team.

The share price of this company is in a seemingly endless decline as investors give up hope of returns flowing their way. I address the following questions to the Chairman, Board and CEO:

• When can shareholders be certain of the carrying value of the "investments" and not see any more impairments or unexpected liabilities in the financial reports?
• Why did the company not pay a special dividend to get some more franking credits into shareholder hands ahead of a possible ALP win at the upcoming federal election, given the substantial cash on balance sheet?
• What is the company strategy to address the weak share price and restore investors trust in ability of board and management to execute and deliver?
• Why does the company continue to neglect the Australian market for new investment opportunities?

It is not enough to point at past Chairman Fitzpatrick and CFO Ferragina for this continued malaise, it is apparent that the failure to execute and deliver within PAC runs much deeper than the questionable contributions of this pair!

Your reply would be greatly appreciated.

Yours faithfully.