Shine Halves Guidance, page-33

Good post and there's the rub.
Is SGH in serious financial trouble?

EDITDAW in 2015 was $205 million which was primarily the Australian arm.

We know the Australian arm of the business is fine (subject to accounting irregularities and adjusted guidance).

The UK side was bought for $1.3 billion less than a year ago.
The current market cap of S+G is $260 million.

Assuming the UK side is worth 20% in a fire sale, we still have the Australian side has been around 80 years and is a market leader in PI. S+G is not like Dick Smith which was badly managed and over valued its inventory.

S+G have the luxury of choosing which legal cases they will likely be successful in and there have been no regulatory changes here impacting claims. The only issue is increasing competition in a saturated market. However, that's where it helps being a market leader.

I can't see any scenario that would lead to liquidation (apart from gross fraud and complete financial incompetence).