Positives: 1) Debt renegotiated...no immediate problems with finance. 2) Good positive cash flow from operations even during the worst part of the Global Financial Crisis. 3) Net Debt reduced by about $1M and shares brought back of $0.5M during the 6 months. 4) Both ART and FACE outlook improving and well placed to participate in a recovery. Potential cost reductions.
Negatives: 1) No clarification on proposed restructuring. 2) Wording is now more guarded and they are using a media consultant (perhaps to avoid another event like June) 3) The result is actually a loss of $2.3M plus a $4.3M currency loss associated with changes in China vs A$. (The size of the currency impact is hard to understand). They down play the loss by quoting EBITDA figures. 4) Some ANZ debt is still subject to regular review and China debt needs to be rolled over in December.
Overall a positive result compared to the situation in June. Hopefully they will clarify the restructuring and restore the revenue and profitablity in the next half.
------------------------------------------------ I am not an advisor. These comments are for general discussion and debate only.
SAV Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
