Ann: S&P DJI Announces March 2024 Quarterly Rebalance, page-19

Russ, could you please tell me how having millions of cars off the roads during the COVID pandemic was "the lifeblood of our industry". Shops making record profits everywhere? Really? Roads were empty during the lockdowns, which meant collision volumes also dried up. How could you possibly make record profits? Job Keeper?

You refer to the industry seeing record profits - where are you getting this data from? Can you please share it? The only industry data I have found is from IBISWorld and their report suggests that industry profit margins are contracting, not expanding.

Paying more than 20x EBITDA for a highly capitalised (ie. lots of fixed assets/equipment) business that has 100% of its revenue concentrated with a single customer is just bonkers. The only businesses that attract such multiples these days are high-growth tech businesses with MASSIVE upside potential. For an ASX Board to pay such a high multiple for a business like Capital SMART is irresponsible at best and breaching their fiduciary duty to shareholders at worst.

A hostile takeover would require them to purchase a substantial shareholding on market and then approach the Board with an offer for the rest of the company that was compelling enough that the Board had a fiduciary responsibility to recommend that shareholders accept it (ie. at a large enough premium to recently traded share price). Once acquired, they would then be able to sell off parts of the company they don't want. But you can't complete a hostile takeover for part of a company.