Devil in the detail...

To some extend the HY16 was slightly worse than expected in my opinion due to operational slack/lack in UK. However, note the phrase (page 1 in financial report - "Review of Operations": The last 3 lines outlines additional expenses following acquisition booked as "cost of sales" and "marketing" - cost of sales $101m and marketing $89m. I expect these will be reduced significantly going forward - especially, cost of sales should disappear - improving the normalized EBITDAW with app. $150m. Add in potential savings on salaries and office closure from restructuring - and the fact that WIP is understated/conservative due to new accounting practice, as all costs in relation to NIHL has to be booked as costs due to lack of historic revenue - no data set for recognition as WIP.

The banks have given SGH a deadline to end April 2016, where the task is show a budget delivering an EBITDAW of app. $150-200 going forward, which I believe is achievable.