sp volatility, page-8

Sorry - forgot - intangible assets on the balance sheet were $383m last half. Remove these and you have SH equity of $406m, with borrowings of $570, and TL of $827.

Also the current gearing covenant is 3x (net debt to EBITDA), and they say they are on target to meet this with an expected ratio of 2.25x. However this is sounding a bit skinny, especially when they say this is the underlying ratio, when the ann of 18/3/14 does not mention that this covenant is an underlying ratio. (Although you would hope for common sense).

Just mentioning the negative side - for those who don't think about that. Banking covenants are coming into play as an issue I think -although we are obviously not there at this stage. On the other side, that seems quite a tight covenant IMO (not uncommon to see a <4x), but if the accountants or auditors ever start to question to goodwill component, then it may get hard to adjust the T and Cs.

Good luck