Ann: Non-Cash Goodwill Impairment, page-13

I'm following this name with interest but even with today's fall, its looking like OK value but certainly not a bargain. If this margin weakness continues, it looks like they will earn <$7.5m EBITDA for the FY, which will likely mean a net loss for the year (D&A will be about $7.5m). In terms of outlook, the deterioration in the resi construction market will inevitably slow demand for surveying, and its unclear whether the infra pipeline will be enough to offset, or at least soften, this decline. In regards to today's announcement, I had initially thought (or hoped) that the writedown may have been done opportunistically to reduce future amortisation charges. However, the company only amortises its customer relationship intangible which won't be impacted by this writedown (goodwill is tested annually for impairment but not amortised). Looks like I'll need to keep waiting for a better price on this one....