Good point on potential write-downs. Another issue I also keep coming back to is the unallocated costs. The table below shows how these costs have been growing significantly in the last couple of years, particularly last year. There is little detail on why this is the case, and presumably it includes fees to Houlihan Lokey and all the other consultants that provide their 'valuable' insights to the company. It would be ideal to get more detail on these as part of the H1 report (which I will follow up with the company if they don't), as its difficult to see if these are costs that would be eliminated if the group was broken up and sold in parts, or just poor cost allocation by mgt. Either way, its a significant issue as we are looking at circa $4m in annual costs that didn't exist 3 years ago.
PGR Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
