Bundll Down Forever?, page-7

Hi Tamz.
Yes they may be non cash but they are also an admission of failure. The impairments reduce retained earnings and therefore net equity and that has consequences in the long term for balance sheet strength and that, in turn in Humm’s case can have a detrimental effect on the ability to raise funding for growing lending operations.

Impairments also ultimately reduce the amount of available franking credits that can come back to shareholders when attached to dividends.

Having said all of that I think Humm is in really good shape to emerge after effectively ditching bnpl and just work to its strengths in commercial and cards.

The new CEO has a wealth of experience and I reckon this is his last big gig and he will want to make it a real success.

Ps. Hope you are enjoying SIQ SP run up, more to come I believe.