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54.5¢ slater & gordon limited

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

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140 Posts.

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16/02/16

08:05

Post #: 17027754
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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.

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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
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