ann out, page-16

What was I saying about the assumption of goodwill at $424 million, that figure has now been downgraded to $320 million and in reality is more like $200 million as the cost of the businesses Hastie paid for in the middle and end of a construction boom is still on the balance sheet at full price less 9%.
No provision has been allowed for the cost of realizing assets under a fire sale in the half yearly report and the goodwill stands at full value for all other businesses aquired since listing on the ASX apart from Rotary UK and Rotary Middle East.
They have purchased Rotary Group for $190 million equivelant (Cash $150 million & 14.4 million Shares @ $3.10) and it now stands on the balance sheet under assets as goodwill at $65 million.
There is no tax offset writing off the value of a business to the tune of $125 million, so why did they not sell it, realize the loss and have deferred tax credits.
A - Because no-one wanted to buy a lemon.

Cash = $70 million, Tangible assets = $54 million and probable inflated and goodwill is $200 million tops.
Total = $324 million.

Debt = $295 million.

This company is worth $29 million / 240 million shares =
12 cents per share.

When the auditors report states they will be granted an extension to the standstill agreement for another 4 months to restructure debt with the same banks who have not provided any further support to them in the last 8 weeks, find a private equity partner which is unlikely given you can get 6.5 % return for cash at the bank or extend the standstill agreement which is impossible, do the words "then there is significant uncertantly regarding the ability of Hastie to continue as a going concern and pay its debts as and when they become due and payable" not sink in.

Get out while you can, before the administrators move in.