Just when I thought we had reached a turning point in sentiment, we get this. We had been getting a sense that TGA has successfully transitioned to meet the new regulatory regime, we've seemed closer to clarity on the ASIC penalty and also we've had indications that finality on the customer overpayments debacle is near. Now this, and a further distraction from stabilising and growing the businesses.
I do think the company can withstand the current predicament, particularly since the equipment finance business is performing strongly, I expect this to become the main income generating unit. Nonetheless there has to be some ensuing reputational damage and declining business performance in the RR business and it will take considerable time to overcome this. Management will need to be at the top of their game to restore shareholder value IMO. Best of luck to holders prepared to see it through.
