Ann: Suspension from Official Quotation, page-345

@Gingell

On going concern is mainly about the performance of SGS (UK) acquired and its associated debt for acquisition. SGH (AU) and SGH (UK) are generating $87M NPAT. According to my understanding for the 1H, AU is doing extremely well, but UK is below expectation. You can do your maths assuming these offices are only generating $65M NPAT this year, how much do you think it worth? It is easily worth more than current share price, as I mentioned in one of my previous post. And again, you are paid now to own SGS (UK) with its acquisition debt, so it is no longer a matter that SGS (UK) fully written-off its non tangible asset as the market is pricing SGS as negative value now.

By market pricing SGS at negative value, it is fair enough to assume that some parts of the offices are not performing, which required restructuring. It is norm for shareholders to take restructuring as something good especially at current share price. It is also norm that those who might lose the job is complaining and angry and blamed SGH for the acquisition and job cutting, but it is important to note that if the office itself is generating negative cash flow, even without SGH acquisition, it was still funded by Quindell share holders, when it reach the breaking point, Quindell will also do the job cutting, hence I don't see it as a complete SGH fault. On the other hand, if the office is only breakeven and has potential growth, there is no reason SGH will decide to close it down after acquisition.

2 things I see is necessary to move forward:
(1) continuous support from the bank (I believe we already have based on comments from Westpac)
(2) job cutting for office which doesn't meet expectation.