SGH 0.00% 54.5¢ slater & gordon limited

They are obliged to update under continuous disclosure rules if...

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    They are obliged to update under continuous disclosure rules if there's any material change to outlook.

    As of 29/2, UK has a carrying value of just over $300m after writedowns.   Assuming they used WACC of 10% (may have been lower), they're forecasting only about $30m pa cash out of UK (may be less up front and more later).   SGL Australia did $16m EBITDAW in H1.   Together that's run rate of about $60m which puts SGH in death spiral with $800m debt.  The load is just too big on the cash generation for principal and interest regardless of short term can-kicking.  SGH more underwater than Greece on these numbers.  Big CR or debt relief needed, absent a big turnaround in cash generation.

    If UK is significantly better (or worse) will need an Ann prior to August result.   If restructuring in UK is leading to better figures, need an Ann.  If some significant deterioration clients/talent, need an Ann.

    Also if NIHL coming good somehow (I don't see it), need an Ann.

    Good news may be coming.

    Otherwise... heading toward some very depressing Aug FY results, given what Feb write downs imply.  Just to prove @Londoner recent post correct, I see the April low being breached in lead up, if there's no good news prior to Aug.
 
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