The consolidated accounts will be more complex than 2015. We are still waiting for good news and the longer they can delay
the better ( we hope ) the direction of cash flow.
If I cast my mind back to the Quindell egm where there was discussion about the shared profit NIHL portfolio, the Quindell
dircetors were very cagey about expectations - but my notes remind me that the picture would not really emerge until mid-late 2017. I got the notion that there would be £45 - 85M ( now $72- 136 m) profits to split if it went to plan. well you can work out the probable net cash +ve if it is on plan. Well nothing has altered my expectation that if it is on plan that cash and HIHL profits would only arrive in 2017. Here we are. However some of that profit and +ve cash fow looks as if it will be late 2017 ( too late for August results........but in time for spring 18. My notions were dot joining and my own. Which is why I bought SGH shares near the bottom in the expectation of a turnaround. ( and so far am losing)
I dont know if my got joining conclusions brought me to false hope or an ugly duckling about to be a swan.
However if it is the latter , in cash flow terms/ indebtedness......transformational , and one day the directors will tell us whether it is the disappointing former or the highly pleasing latter. Fruit harvest?
There does seem to be some flickering on the NIHL front and presumably the directors are working on positive cash flow throughout the group. Hopefully growth is a distant notion.
mel
.
SGH Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
