Ann: Veris 1H FY19 Results Presentation, page-29

Thanks for your reply. Some of my points were perhaps badly worded... I didn’t mean to imply that VRS would sell assets (just that the ratio was OK) and by selling receivables I had meant continuing business ‘as is’ but using some receivables factoring instead of bank debt. Again, I’m not proposing they do this, but given their customer base (RIO, BHP, Govt) there’d be a number of accounts where factoring finance may still be expensive vs current debt, but not wildly more expensive.

Overall I was making the case that the balance sheet doesn’t look too bad for me (but I do have a high risk appetite) and I take your point that bank involvement and potential covenant breaches are red flag. Your comments are therefore sobering.

Thanks again, SImon