Ann: Management Update, page-24

I'm only reading the tea leaves but perhaps the profit guidance is looking shaky:

27 August:

The departure of the CFO is announced at the same time as the profit guidance is given - a highly unusual step and they used the words "high calibre, experienced" in describing the type of replacement they are looking for. Given this was the outgoing CFO's first full year audit, maybe the process was a little shaky.

The notes to the accounts in the accounting policies also include the words "the Group expects an increase in the loss allowance for receivables and is in the process of finalising the effects of applying the new standard on the Group's financial statements." It seems bullish to give tight NPAT guidance 12 months out when you still aren't sure of the full impact a significant new accounting standard will have.

29 August:

The market reaction resulted in issuing the clarification on arrears and reaffirming the profit guidance - although now the announcement is if the name of the Chairman. Perhaps the Board rolling up their sleeves after the initial feedback on the credit deterioration.

12 Sep:

Board realises there's a material issue which affects the profit guidance and puts it into trading halt, couched as "a detailed review of the Company's business strategy" - although given that trading halts generally last for 2 days, I don't know how detailed the review could be.

14 Sep:

The profit impact of the issues are going to take longer for the Board to be able to get their head around and issue a reliable update to the market and it goes into voluntary suspension. The issues have been building under the watch of the CEO and they are politely asked to leave.

I hope for holders this is not the case and that it is something more benign, but I have seen these situations before.