Ann: Media Release: Restructures Property Service, page-7

re: Ann: Media Release: Restructures Property... Gutted by today's announcement but lack of liquidity exaggerates movements on this stock. 1.03? You gotta be kidding.

They have moved down the EBITA from $58 million to $46 million or by 20%. I am not happy that they have not disclosed the expected bottomline i.e. NPAT. EBITA can be massaged up or down to suit management's forecasts. Very often costs can be hidden as one-off restructuring costs to make the EBITA look better. What matters is the NPAT, after all that's the bottomline then the readers can make their own assessment of what the one-offs are.

In the market update of 30 July, they had indicated NPAT of 18.7m (26.2m-7.5m). With the additional restructuring costs, reduction in EBITA and change in accounting policy for valuing receivables what is the NPAT? Is the reduction in receivables going to knock off a full 29m off the profit? Does that mean we are going to have a profit or a loss for the year? They should really be telling us and not leading us in circles.

It is comforting to see that they will pay a dividend of 3c, but I will be looking for directors buying decent-sized parcels of shares on market to illustrate their conviction they can turn the ship around in H2. Otherwise I fear they might be issuing another downgrade in the next few months.