FY16 results - My thoughts on OCF, non-recurring expenses and debt, page-52

I think I can echo most of @Arpit85 response to this. But just to add:

1) Turnaround's are relative - that's the point. You seem fixated on absolute terms, which are quite arbitrary at this stage.

2) I respectfully disagree. Firstly, when you refer to broker consensus I assume you are referring to the same brokers that were also recommending to buy the stock when it was trading around $5?
Secondly, half of SGS' revenue for the full year was derived from services revenue from the Motor & Health division. This has admittedly declined to 45% in H2 resulting from loss of the Swinton contract, but my point is that 'not the majority of this UK business' derives its revenue from fast track RTA claims. So if these regulations were implemented in full, which I think unlikely, approximately half of SGS' revenue is insulated.
As for the SGS Claims and SGL UK SSP divisions, the Company has already taken a significant impairment to goodwill (around ~25% of that total charge in FY16 if memory serves correct). We know some form of regulatory change is coming so if the Company has to pivot again to deal with it so be it. This is already factored into the SP and I think management has contemplated what reorganisation changes would be required if it was forced to go down this route. Again, not a deal break and already contemplated by management if you listen carefully.

3) I understand your point and also Arpit85. As LT shareholders we want some reassurance about upside prospects but should also want to be protected on the downside (from the CA). It might be unreasonable to expect both in the current circumstance. Personally, I do not think it is Director's obligation to buy SGH stock to support the SP. They are already leveraged to the company via their Board positions (human capital) along with their professional credibility on the line.

4) I also felt that lack of guidance on this was also disappointing. However agree that we aren't reliant on it to survive and should the 'probability of success' rates prove to eventuate, I consider this a free option to pay down a good chunk of debt.

It is clearly a speculative buy, but one that compensates risk for reward IMO.

The ASX300 decision is great and a good opportunity to clear out the passive Index Fund investors. Should the company turnaround and improve its market cap for re-inclusion they can buy some of my shares at the right price.