2H23 underlying was $9m NPAT, less the $6m provision = $3m NPAT adjusted. Against this, the $6m NPAT (NOTE $4.3m tax adjusted) appears to stack up well at first glance. However, it depends on what they've done with the $6m management overlay provision. What has happened to it? has it been fully or partially drawn-down/reversed in the 1H24 result? Does it now sit at zero on the BS? If yes, then the underlying NPAT in 1H24 is zero. If it wasn't used at all and remains at $6m on the BS, then the result - sans overall - is a true pre-tax profit of $6m cf. $9m in the prior half. Better, but still down. It is material as to quantum and quality of this result.
My question is in the context of the resignation of the CFO and the appointment of a new auditor in the same period. Understand the auditor appointment as good governance practice, but when it happens at the same time as the resignation of the CFO and no mention of the $6m management overlay provision taken last year, it raises questions. It would be best if the company just disclosed the detail. Does anyone know more?
MME Price at posting:
8.5¢ Sentiment: None Disclosure: Not Held
