HKI I have to laugh at your post. I bet that in 2017 onwards,...

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Melrosian

2,018 Posts.

07/02/17

00:38

Post #: 22413500
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Originally posted by HK1 ↑

Looking at Page 7 of the 2016 results presentation, that shows Normalised EBITDAW, SGL Australia made in (FY16) 35.9m. While the Group made 36.6m.

You would have to be a complete moron to sell of the only good business you have. SGL Australia is a good business - they have a pretty good model, know the market, have good market penetration and generally were pretty successful. Maybe some of their accounting methods and success strategies for improving growth were not brilliant, but it is a reasonably sound business. Oh, and it has reasonably good cashflow, which is absolutely crucial to this sort of company. As a group, it is struggling to be cashflow positive though.

So you are going to have to come up with a better explanation other than to "sell down debt and keep the other rubbish bits of the company." Even assuming you would have a buyer for SGL Australia, who in their right mind would want to own what is left of SGL Ltd? It still would have some debt, most likely, and still have a mess that it is (trying to) cleaning up in the UK.

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HKI

I have to laugh at your post. I bet that in 2017 onwards, most group profit and +ve cash flow will be in UK. After Jocks have won the grand slam - I bet too that SGH SP will shoot and be a wonder to behold after Aug 17. Last of the pain will be Feb 17 results but enough evidence of a turnaround may be there.

Mel ( Profit uplift hoving into view mode)

PS I bet too that this time next year debt will be below $500M and heading below $400m in 2018. ....It's enough to make my monacle steam up. I plan to be living high on the Hogg saluting the mighty Finn. Future is blue.

SGH Price at posting: 26.5¢ Sentiment: Hold Disclosure: Held
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