Re: Ann: ASX Release - FY 2018 Results

I like Directors that are open, honest and transparent and I do not find that with Oliver's Directors, let me explain why.

Oliver's has just released their 2018 Full year results presentation on 30 August 18.

The presentation reminds me of a Politicians cleverly crafted P.R. Statement which when you analysis it, lacks depth.

1. High lighted is EBITDA $2.7 million but when you read on in later pages net profit after tax (NPAT) is only $384,000!!!
2. Properties sold were Marborough for $1.85 m Jan 18 and Bulahdelah for $2.075 m April 18. Why did the directors not state what profit they made out of these sales? If for example Oliver's made say $1 million profit out of these sales then it would appear the company would be in a NPAT loss? But we do not know. Why did they not say? Oliver's buys the properties and then increases the rent and length of lease to entice a buyer to pay much more than Oliver's paid for it. Get it?
3. Oliver's offers no earnings guidance for 2019, why not? Oliver's would have to submit to their Bank a budget for 2019 as part of their loan facility. Why can't shareholders see that budget?
4. There is no Auditors report available, why not? Is the Auditors report qualified? This means that the auditors report may say that Oliver's may have insufficient cash available to see them through to June 2019. Why do the Directors not comment on the auditors report and give shareholders a level of comfort about this? Furthermore why did they not say how much cash they had as at 30 August 18?, again I say be transparent with your shareholders.
5. I suggest that Oliver's Director's may wish to paint a rosy picture to lift the share price from 13 cents back up to 20 cents and beyond if they do in fact need to raise more cash which I believe is needed. But they do not say or comment on the need for more cash requirements or the lack of need for it. Why not? With a continued share price of approx. 11 cents where it has been trading they would have found it almost impossible to raise more funds I would suggest.
6. Oliver's now has 8 Senior staff members on considerable pay levels, many only employed in recent months. this will impact heavily on salary cost in the 2019 full year. Oliver's states "same store growth was 4.3%". That's low and worries me for a so called growth business, don't you think?

Many questions remain unanswered and I am not convinced this is a viable business based on the information the Director's have supplied.

The Director's had a chance for full disclosure but chose not too and left many questions unanswered.