Australia's largest stock trading and investment forum Australia's #1 stock forum

SGH

Click for more information

0.00%

54.5¢ slater & gordon limited

Can't imagine there will be much of a bonus for AG and co this...

First 25 Last

Share
Profile

Follow
Gnuck

140 Posts.

5

16/02/16

08:05

Post #: 17027754
Share

Originally posted by mike8654 ↑

I don't know Geralvin.

I'm not a holder (have never held) because I can't work out what's going on - management aren't supplying much info currently.

What I've done is looked at SGH before the purchase of SGS (they had roughly $50M operating cash flow before interest charges from memory in FY 15) and the SGS cash flow position for FY14 in the Quindell restated accounts. If y7ou combine the two it's negative.

Management have said first half FY16 SGH result is about $40M negative (operating cash flow).
If they turn that around in 2nd half to say $80M positive (which to me seems a good turn-around), that's still only about $40M EBITDAW for the full year.

I'm not a spring chicken and have seen a bit over the years - it's quite rare to see a services company where most of the expenses are salaries, go from something like $40m negative in first half to $180M positive in 2nd half. Not saying it's impossible - just saying it would be a rare one.

Expand

Can't imagine there will be much of a bonus for AG and co this year... that'll help with cashflow

SGH Price at posting: 61.5¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

MIN

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

MIN

Ellison slapped with $20M sanction from MinRes but will stay on as leader – for now

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

There are more pages in this discussion • 30 more messages in this thread...

First 25 Last

Add SGH (ASX) to my watchlist