Hi NT, Just saw the Slater and Gordon thing. It's not a class...

Hi NT,

Just saw the Slater and Gordon thing. It's not a class action, as least not yet. It's a proposal to do one. I can't see much merit in it myself. It's a totally different scenario to say the Bellamys class action, which alleges deceit and wilful blindness. On a reasonable test I think the SPO debacle was largely an over reaction by the market, and that SPO unfolded under a natural timeline of events, and was responded to accordingly. Can't see any smoking gun with SPO whereas Bellamys has bullet holes all through it. It is not true to say that the new businesses underperformed, but clearly they had unexpected costs in both materials - major linen purchases and personnel, being bulk overtime expenses when intergrating the new laundries. That's unfortunate, but not dishonest or a display of malfeasance. We will find out if the new businesses are underperforming in the February results.
Cheers mate, steve