The big question for me about this downgrade is, "is this as bad...

The big question for me about this downgrade is, "is this as bad as it gets?". As in, have they underplayed the underperformance or described it in full.

If they can offload the underperforming capital business without any further losses, it shouldn't result in much of a write down in goodwill given it really is the legacy part of the business from before the roll up strategy, and wasn't one of the big cash acquisitions. The 'continuing business', if generating a EBITDA of $28 million, should probably give a NPAT of maybe $20 mil. Although the statutory accounts this year won't look anything like that due to the loss making segment. Nevertheless, just taking the continuing business figures, that's a PE of about 7.5 now. And if they do manage to integrate well over the next 12-24 months and implement savings, grown organically etc. they could see a significant increase in EBITDA and NPAT, making the current share price very cheap.

But if this isn't as bad as it gets... well who knows. My confidence is shaken :/