Ann: Half Yearly Report and Accounts, page-16

• "A minimum underlying FY19 EBITDA budget of $90m;
  
• Introduction of a financial covenant on actual quarterly underlying EBITDA performance to budget, with a 20% variance trigger; "
  
  This is a terrible new banking covenant for the company and in my opinion will not be met.
  
  The actual EBITDA for 1 July 17 - 31 Dec 17 was $45.6 mill.
  
  Now remember that the initial AFR newspaper article was mid December 17 I.e. It only impacted approximately 1/12 of the reporting period.
  
  No new franchisee renewals for exiting franchisees following this media reporting.
  
  I cant see any chance of EBITDA being $90 mill per annum or achieving the quarterly review targets. ($22.5 mill per quarter)
  
  Sell, this is a sinking ship.