Ann: DDH1 and Perenti Scheme Implementation Agreement, page-91

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westmount

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22/08/23

14:16

Post #: 69479461
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Originally posted by glendronach: ↑

I listened to the PRN update this morning. Despite their best efforts at spin - putting the lipstick on the pig,- the story behind the basic metrics show some improvement from a very low base but PRN is wallowing in debt. Inference was DDH is their saviour! I was surprised at the initial market reaction but now that there has been more time to absorb the numbers the chickens have come home to roost - down 12% last time I looked. And of course DDH has followed them down.

There were questions about poor asset and capital management, about the size of the debt and interest thereon and loss of an apparently large contract. There was the claim that dividends would be considered in 2024. I very much doubt that given the amount of debt to service and interest expense. Whilst return on cap employed is a healthy 21% it is still not enough to make much in-roads into the level of debt! By the time the debt is down to a manageable level I will have died. Net profit - NPATA of $132m - thats BEFORE amortisation against revenue of <$3bn is not great.

I wonder what the size of the DDH MD's incentive payment is! Disgraceful conflict of interest and should be illegal. This merger cannot happen! Its a disgrace. its very notable too DDH has not published its numbers - normally out by now! Keeping their head down - trying to sneak it thru as quick as possible!

Its absolutely essential that every retail and wholesale investor votes against this proposal for the sake of the head count. We are smashed on the percentage but there is a chance it can be voted down on the head count. It stinks! So please attend the meeting in person or electronically to vote NO. Check out LVT. It can be done! Do not accept it as a done deal.

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Good on you @glendronach. Thanks for taking the time to listen in on PRN's update. The financial report was enough for us but you've been able to really chisel into PRN's lack of substance and how DDH holders are being dudded. Cheers.

DDH Price at posting: 84.0¢ Sentiment: Hold Disclosure: Held
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