Ann: Company Update , page-6

the goodwill impairment was flagged in the 1st June earnings guidance, and it is no surprise they would use this opportunity to write down whatever else they could with the new m.d coming in - looks better for a clean slate and all up from there.

I guess an update on my earlier scribbling is due? shoot me down but here tis....

quick summary from the half yearly financials put assets at 170mill, of which 82 mill is intangables - goodwill etc that is now written down by 51 mill to 31mill. The balance is made up of 47mill of current assets reduced by 3mill in this report to 44mill (cash/recievables/inventories/cabins held for sale). The other 41mill property plant and equipment - lets discount these by 50% in fire sale = 20.5mill. Totalling up 44mil current assets plus 20.5 mil plant/equip plus residual 31mill goodwill (this is unlikely to be dicounted further imo) puts valuation at 95.5 mill assuming no value for future profit. For debt assuming no change from half yearly - 25mill bank debt, 26 mill trade creditors and sundries reduce by 52 mill to 43.5 mill (95.5- 52) end value. Assuming we wear all of the 3 mill in provisions for loss then 40.5 mill. - 138 mill shares on offer puts this valuation at 29 cents a share in sell the farm mode.

So imo this bad news report is more likely to be taken positivly as it's news is up from current valuation: - once the smoke clears bring on 29c :-)