Andrew Grech ain't a business person, we all know this. AG just left all the acquired businesses as status quo, and focused on counting staff and patting himself on the back. Banks come in wanting their money and enforce/"assist" transformational changes.
Can you imagine how much of a field day someone would have in this position?
Centralizing staff alone would mean upwards of 500-1000 support staff gone across the group.
Closing several locations would equate to millions in rent savings, utilities, phone systems and more.
Consolidation of resources like admin, accounts, hr, etc would mean further staff reductions.
Dropping unnevessary PA's will save millions.
Big one, slashing board and director wages.
For someone who enjoys this type of this, they would be like a kid in a candy store, soooo much opportunity to make money.
All this while having no material affect on income streams, or progress on WIP. Anyone who wants to keep their job will have been working their butts off the past couple months to prove they are worth keeping. Others will go, let them - SGH want the deadwood removed.
It won't be a "miracle" turn around, it will be a very straight forward turnaround.
Only reason not to buy is if you think banks will close the business - they won't get anything back, they aren't stupid.
Beat part of all, they are under immense pressure to get this turn around in place - it will happen fast, if not a bulk done already. When this happens/leaks to media, SP will return. Watch the media for articles on mass layoffs, then bbbbbounce time
