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Would NIHL cases be viable to Payout after the introduction of...

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Bugzme

172 Posts.

03/03/16

02:29

Post #: 17172042
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Originally posted by Melrosian ↑

Mike

I am certainly not normal. I eat skugas and herring breaded in oatmeal. Do I think Scotland will win RWC 2019 , Absolutely.
Will Melrose XV win the cup and Premiership. No doubt at all.

Rob Terry - big cheer from me when he was removed. Managerial incompetence - agree. Strategic planning -complete fool and I had tiny investment then which I immediately sold when problem became aparent. RT Dishonest ? Time and the SFOwill tell . It does seem his acquisitions were dodgy. Was his WIP valuation imprudent . Yes probably overcooked by 5-7% . Was QPP WIP value zero. Don't be completely silly. ... but that is what probity Rose the new chairman showed for pre deal WIP after the PSD sale.

KPMG I do not believe for one second any blame attaches to them. I think we all know that only QPP KPMG audited annual report to Dec 2013( which included a small % of NIHL cases in WIP had "unnacceptable valuations") . QPP annual audited report to Dec 14 did not appear till July 15 after PSD sold to SGH. KPMG explicitly refused to sign off the Dec 14 P/L in the annual report ( with WIP written down to almost zero) as representing a true and fair view. It obviously did not. I dont believe there is evidence to suggest QPP PSD ( not inc NIHL) WIP valuation at Dec 14 were unacceptable ( despite PwC saying at "aggressive end of acceptability")

As to AG shunting resources at SGS WIP( QPP PSD) to get it firing on all cylinders ........that is precisely what I would have wanted in the plan and that plan was probably in the plan the banks agreed to.

As to NIHL. It may turn out to be fools gold and the straw which breaks the back. Still seems unlikely. At the takeover SGH had an excellent chance of recovering most of the $144M cash QPP had spent on WIP ....and the only cost would be $40 m profit share.(according to guidance by WTG board to its shareholders) Darned good if it works and it may well do. If it is fools gold, they have spent a further $30M on it and then can get rid at a net cost of $30M. More likely is that the expectations of $200M cash will be garnered in 16 months. They should have a good idea about likely success by now and IT MAY BE ONE MATERIAL BUNNY IN THE HAT. Incidentally $200m now exceeds Market Cap. Do I think SGS UK is a good business unit? Yes.

As to UK Legal services. Seems they will be ramping up WIP. You dont make a profit if you dont line up work. I dont know enough about SGH UK prebid elements , but I rather hope H2 has a prettier story.

So SGH has an HI cash flow problem . Stick the turnaround specialist in with the samurai and he/she will chop some profits potential.

I am the eternal optimist and have prepared parts of 2 successful plans for private co turnarounds( One even surprised me when it worked) . It taught me that you need a plan and you need support. SGH H2 in the original SGH plan may have had pretty elements which are still there. H2 might be highly cash positive although H1 next year seems more likely to have pudding proof. There are good ingredients to work with. Is SGH robust enough? Probably but not certain. Is all lost for the equity holders? I have a wee notion the answer is painful but no.

Mel

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Would NIHL cases be viable to Payout after the introduction of legislation Cap on NIHL ?

Meaning if the cases are taken on and minor WIP done would they still retain current payout valuation after the Grandfather date of legislation, or would they still be Capped at the $5000 Limitation?

SGH Price at posting: 26.0¢ Sentiment: Hold Disclosure: Held
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