Ann: Profit Guidance, page-8

Cevatt wrote, "seems like a conservative writedown good buying at $1.54 on a long term view".

As the circumstances for the need to increase the provision are well known, and what occasioned the problem is historical, in theory the drop in the share price should be something like $4m divided by 154.5m shares, which is circa 2.6c, which is no more than the typical bounce-around on any trading day. On that logic, the market has overreacted.

The need to spend money altering the network of outlets so that there are more hub-and-spoke arrangements and less stand-alone stores is also a factor to consider, as that will impact both EPS and DPS in the time that it takes to effect the change. This policy is not new (it was stated some years ago), so mentioning it in the recent announcement should not have had much impact on the SP, unless one reads into it an increase in the tempo of that change, and one's forward-looking is short term.