I understand that Westmead has settled and the revenue is to be booked. I cannot however see a provision for the purchase in the accounts? It was not a distressed assett and therefore not (i assume) sold at property value only.
How have they purchased the business or is that owned by the property trust as well? Am I missing something obvious?
Whilst I think you are right in predicting 36M turnover the salient question is at what cost? At a market cap of $5m I do not think I am alone in this thought.
Another concern is the expressed desire to sell and leaseback Gympie hospital. I think the onus is on Pulse to assure us that this is not to fund cash demands and is to grow the business . It would appear to be the only significant realisable assett they own!
My final point and question is that for 2 quarters thay have been in breach of banking covenents. Whilst assured that they have been granted a stay of execution by their bankers I believe an indication of the nature of the breach and perhaps elucidation of the plan to remediate the breach would now be appropriate.
PHG Price at posting:
4.0¢ Sentiment: None Disclosure: Not Held
