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Autosime

20,449 Posts.

2010

20/04/21

14:55

Post #: 52595237
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Originally posted by Pardner: ↑

additionalcash?I went through the announcements to try to find out about additionalcash; nothing obvious! You may be referring to asettlement related to New Zealand Corrections contract. A few things:
All the impacts were brought to account in the June 2020 report
The loss impact of closing New Zealand was stated as $44.8 million; the reason for the loss would appear to be no revenue (note 6) likely because NZ Corrections refused to pay and this is in dispute
There is a further provision for "forseable losses" of $15.7 million (note 26) again likely due to NZ Connections contract

It would appear that the likelihood of "forseeable losses" isgreater than that of "settlement in Decmil's favour" because theprovision was recognised and the potential revenue not recognised. I recognisethe adopted treatment is conservative and the likely preferred treatment of anew management team and Board trying to put the past behind it. I have noconfidence that Decmil will end up with any cash once the NZ Correctionsdispute is finalised and all costs paid!
Also, the value of Homeground was impaired by $36 million (note 16) leaving acarrying value of $56.6 million. My view of this is that impairements of thistype are like cockroaches! "if you see one it is very naive to think it isalone!!" The value of the asset will continue to fall until it finds abuyer.
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Pardner
they have taken the loss on NZ you are correct but a very confident of a win and settlement of upto 60m . The 15 m downside refers to Sunraysia which may also have a positive outcome
as for Homeground - what makes you think there aren’t interested buyers now
DCG Price at posting: 56.0¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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