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54.5¢ slater & gordon limited

Centres of excellence - restructure, page-7

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Gekkowolf

2,358 Posts.

234

04/08/16

17:24

Post #: 18446808
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Originally posted by Tumbleroll ↑

I agree downsizing is needed, and I don't use the term in a pejorative sense ('right sizing' is perhaps a better word)

My concern, as an investor (though admittedly not invested in this stock) with 'centre of excellence' terminology is that it implies these reforms are driven by a desire to improve quality of service, whereas in reality the reforms are motivated by a desire to cut staff and reduce costs - all in an effort to bring the co back from the brink of ruin.

Its an important distinction. The company is not investing in itself to improve its service, it is divesting parts of itself to minimise the cost and availability of service. The company is scaling back. It is reducing its footprint and market share.

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Since the banks agreed to restructure the debt and gave the company two years to restructure operations they must have some confidence in the Board and the Company. Otherwise they would not have agreed to the deal.

SGH Price at posting: 41.0¢ Sentiment: Buy Disclosure: Held
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