SXE southern cross electrical engineering ltd

Ann: Notification of commencement of arbitration, page-3

  1. 731 Posts.
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    I don't see this as being unduly negative:
    - the amount under dispute is revenue plus interest not actuals
    - I don't know how the disputed amount is being treated in the accounts but since this is over 5 years old hopefully some written off already in the event of bad news. Legal fees are an extra expense.
    - a win increases the already significant cash holdings in the comany.
    - My best guess is there will be a negotiated settlement which won't be material to the profit result - but the cash received can be usefully deployed by the settlement amount.
    - they have a diverse and loyal customer base so reputation shouldn't be an issue.
 
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