Hi guys,was encouraged by the result and happy to have relieved...

Hi guys,

was encouraged by the result and happy to have relieved Paradice of a heap of their shares at 30c.

No divi and reducing debt is the right decision long term.

Some things to keep an eye on however;

1) I note that the receivables have blown out for the half year whilst sales have only increased marginally. Credit control will be a huge area they need to focus on from here on in.

2) Debt has increased, and thus interest payments, seemingly from higher receivables and increased costs of holding inventory. Making their working capital work harder is critical in the next six months.

I think it will take years for MCP to get their debt down to levels acceptable to main stream investors (say from the current 75% to around 40-45%) but it is achievable.

With low cost, semi-discretionary FMCG's MCP should survive this period... although I note good commentators are now saying this is looking like 1929 !

Anyway - my money is in for at least 5 years now (give them time to turn it around) and I would anticipate a $4-$5 share price by then...