Grant
Just interested in your perspective of how the banks would be feeling right now. Assuming their are no breaches one would think they would be a bit loathe to exert influence. I would imagine there must have been a pretty detailed plan arising out of the Psd. In fairness to Sgh they called out this half to be cash flow light. Light now appears light on. My concern for Sgh is they don't have a lot of leverage against UK insurers to hand over cash. The dividend is off the table for sure. One would think some major surgery group wide would be in order. Starting with sgs , I think their file intake may drop to 50000 per annum under the new regulatory regime. Once those legacy files are dealt with sgs could be halved. I would also like to see clear evidence of motor services contributing meaningfully. When I see 55 million spent on marketing or 9% of revenue. Another area that could sustain some substantial cuts.
On the positive side, any write down funds debt reduction , it would not seem unreasonable that Sgh may have a claim against Quindell for some or all of the escrow amount. They have already flagged 20 million pounds negative movement in wip. ( cases thrown in the bin.)
In addition nhil has the capicity to reverse its cash flow position. So not quite an iron ore miner.
SGH Price at posting:
91.5¢ Sentiment: Hold Disclosure: Held
