Headroom & Cash Flow, page-66

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Alex999

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27/03/16

13:15

Post #: 17366219
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Originally posted by lakota6 ↑

Alex, i disagree with your analysis of SGL Aust H1 results , EBITDAW up 15% to $16.4M , and included one-off costs of $3M for ASIC etc...and with BOD statements including WIP decline offset with strong billings, and staff and client monitoring indicating no evidence of any material change in satisfaction levels . I understand that you will come back with the level of credibility of the BOD, and yes that has been a major concern, but I would have thought with CA possible and outside consultants examining these results with a fine tooth comb, they have to be taken at face value. All agree that SGS, SGL UK are major issues , but once again these issues hopefully can be fixed, with restructure and integration. Whether these steps are enough to satisfy the banks I, and no-one else knows. Only time will tell. There have been many statements in reference to the bank debt being "bad" and that SGH is on a weekly cash flow report, but where is the proof that these are fact not inference.

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SGL Australia not disaster H1 - correct. I'd need go back and dig out forecasts and commentary but analysts broadly expecting no margin compression and there was >20%, so earnings disappointing. Some revenue SGL Australia of course was acquired, so especially disappointing when income doesn't flow through to earnings.
The $3m for ASIC nuisance booked in H1 affected earnings but will likely pale compared to the $ now on the lender / restructure / other nonsense.

Been reported in Fairfax couple weeks ago that "weekly cash flow reporting" now demanded by lenders. Take this for what you will.

The only "news" about bad debt provisioning is from WBC, nothing official from other lenders. WBC have biggest exposure to SGH in the syndicate - almost 1/2.

SGH Price at posting: 25.0¢ Sentiment: Sell Disclosure: Not Held
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0 Great analysis

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