$8M in merger costs now $10Mwith DVR employee costs.Used most of...

$8M in merger costs now $10Mwith DVR employee costs.

Used most of debt capacityto fund DVR, now net debt when have been net cash. The CEO has bet the house onDVR. No confidence the $3M in synergy savings enough to counter poorperformance of underlying business and lack of firepower to fund highlyaccretive tuck-ins.

Corporate overheads keepgrowing, looks like CEO building own version of CBA or AMP.

In 1H22 NPATwas $3,120 and 1H24 is now $2,613 – CEO “cleaned house” and made impairmentsbut NPAT number now is only $23k more than the 1h23 year we got hit with transformation,fixing past problems and cleaning house with impairments.

Revenue up by8% but corporate overheads up by 13%, expenses in the firms up 9%. What can go wrong here?

It was theshare of profits from minority equity holdings that saved the results.

Aggregatedgroup performance has 1% improvement in NPAT –so even after a number ofacquisitions management have not moved the needle. Cut through the corporate spinand this is the issue – the actual results that matter is poor. The slide decklooks great though – and lots of slides talking about transformation. The shareprice tells the real story.