Ann: Results of Meeting, page-11

At the AGM they told us that Withnalls was so successful they were flying in a lawyer from AFL Perth two weeks on and two weeks off. They were also supporting from the Adelaide office. Given the labour shortages I asked why they were doing this as Withnalls was only 51% AFL. They explained that 49% of the cost was covered by the third party, which did not really explain why they were doing this given the declared lawyer shortage hurting the rest of the group. I also wonder if this part-explains the poor organic (non Withnalls) revenue numbers.
Declaring an enhanced EBITDA figure per share from the merger is a bit disingenuous as it overlooks the interest part of the $10m they are taking on. What is the interest rate? It makes a big difference whether this is 3% or 13% or more. All they said is that this is a standard variable commercial loan and not yet drawn down. Fine, but they could still advise the market the basis, eg 5% above bank base rate, or whatever. A bit more transparency would be helpful and the new board should take this on, but generally I believe this is looking oversold now. I too bought my first lot in the 40s :-(