Can SGH be saved, page-4

Yes SGH can B saved if BOD stop sleeping at the steering wheel while driving SGH.
Just wondering how many of the investors have seriouslr read the investors presentation and R not shooting off the cuff here on HC and on BUY/SELL sign on their screens.
Please go and have a serious look at the investors presentation.
Gross Operating Cash Flow
Gross Operating Cash Flow (A$m) H1 FY16 H1 FY15 % CHANGE
Receipts from customers 533.0239.8122.3%
Payments to suppliers and employees (594.1)(208.0)(185.6)%
Payments to former owners (1.4)(0.7)(100.0)%
Net Interest (11.3)(3.0)(276.7)%
Income tax paid (9.5)(2.3)(313.0)%
Net operating cash flow (83.3)25.8(422.9)%
Add: Net interest and income tax paid 20.85.3(292.4)%
Gross operating cash flow (62.5)31.1(301.0)%
Have a look at the above details.
Receipts from customers is 533 million for 6 months.
Payment to suppliers and employees is 594.

Massive restructuring should have happened from October 2015. Looks like people at the top were either delusional or misinformed or overconfident to say the least or just lacked the skills and guts to implement tough but good business decisions and take responsibility for mistakes and then take timely corrective action.
My take is that at least 1 out of 3 of the total number of staff in UK is going.
Many many offices will be closed.
Marketing and dsales budget to be slashed may be 30-50%.
If SGH management cant do it then they will have to go into VA and shut the shop. Soon v v soon.
I am v v surprised that with the numbers that they have delivered they have not acted last year. Looks like BOD has been sleeping while on the steering wheel.
Now read the next bit v v carefully.

FINANCIAL ARRANGEMENTS.
McGrath Nicol/FTI Consulting engaged as bank advisers

Short term cash flow forecasts provided demonstrating liquidity

Compliance certified on 31 December 2015 debt covenants

Operating plan and restructure proposal due to banking syndicate in March 2016

Will include a performance improvement programme and debt reduction plan

Agreement to be reached on amendments to the facility, if any, by 30 April 2016

Facility maturity may be shortened to no earlier than 31 March 2017 if no agreement agreement.

Pls not SHORT TERM cash flow forecasts provided demonstrating liquidity.
So SGH is solvent short as per details provided to the banking syndicate.

Review and assessment of UK operations completed

“Centres of excellence” will be established assisting clients with:

Fast-track personal injury claims

Fast track PI services consolidated within a limited number of major regional centres

Serious and specialist personal injury claims

specialised units at selected, strategically important locations including major centres

General Law services

specialised units at selected, strategically important locations including major centres

Likely closure of a number of current sites and potential redundancies

Consultation process with potentially impacted employees over the next several months

Motoring and Health services will continue.

The above bullet points give u idea of what is happening re restructuring. Looks like it is happening in a big big way.
SGH Management has no choice.
Either BK the whole SGH or go hard and fast in restructuring and OPEX cuts.
Even a dumb wit can decide weather to die or go on fast for a while.
They need to go as hard as some will say slash and burn. But will ucall it slash and burn when the next option is close a legend of an Ozzie comapn ythat is 81 years old.
SO ALL planning etc is complete re restructuring and opex cuts. Looks like just nod from banking syndicate and in goes the scalpel or knofe whatever u can call it. Sad and sorry for the employees that will go. If this does not happen then the suffering will be far far bigger.
SGH BOD, pls stop sleeping on the steering wheel. Do what UR paid to do.
Do it quick smart.
Do it B4 it is too too late.
UR already v v late.