Everything about this seems a bit rushed as my take having...

Everything about this seems a bit rushed as my take having re-read the report it is clear that the auditor has cautioned the management about the value of the business as a going concern. Hence the total write down of goodwill and the caution concerning the value of the NTA. Strangely the management still values the loyal client base .. I'd have thought this is called goodwill.

Debt covenants are an accountants wonderland. $91m by 31.12.17 .. so they have to reduce by $25m over th next six weeks. Well with $202m in current receivables .. that about $23m over the next 6 weeks. One of the weird effects of a slow down is that it is cash flow positive. So they only need to move maybe half of this into the trust before the new year. Seems doable. The $50m target by 30.09.18 is more difficult. I would think the company may choose to refinance once the the full year figures are available. What is clear is that this reduction should make life more difficult for the company.

As a going concern .. I think this company has a role to play in the market place as there are a lot of people who simply are off the radar. People who's idea of record keeping is counting the cash in their back pocket as the ATM wont give them their $7.93 bank balance. It is a more expensive business to operate but it is still operating cash flow positive. Clearly the company would not have preferred to declare a dividend but it has franking credits to distribute. Asset sales are a worry .. dont really know what it has to sell but it still seems doable. If anything this has addressed issues that should have been remedied years ago ..

I'm holding .. as I said earlier I was concerned about the debt but the business seems good .. it has its challenges as the company doesn't have the capital to experiment with too many new ideas but lets see what the new CEO decides ..