Orion Health

[Baa_Baa]

I wouldn't mind betting a couple of bob the bank told him to right size the company. Any way you slice and dice this thing its looks reactive not proactive and is a circa 10% reduction in head count really enough ?

I'd say you're almost certainly correct that now OHE is at the behest of their bank that the bank said strip out some costs!

It won't be enough in Toto though, to put the company back on a solid footing. If we assume an average of $100k salaries which isn't unreasonable in the IT sector, then 10% of 1200 staff = $12m of savings. It's a good start, but not enough.

OHE need to show confidence in the top line number as well, confidence that they have a solid revenue stream and a sales pipeline, and when they expect those will be converted to customers. They 'allude' to it by holding onto the statements of moving to profit in FY2017, but of course there is no evidence to support that.

At the heart of it is where it all started. OHE have pitiful reporting, leading up to the IPO and subsequently. No investor could have any confidence in OHE's future until they realise that 'disclosure' means exactly that! Disclose the numbers, front up to the shareholders with the facts, all the facts, and stop obfuscating the truth.

[Beagle]

I'd say you're almost certainly correct that now OHE is at the behest of their bank that the bank said strip out some costs!

It won't be enough in Toto though, to put the company back on a solid footing. If we assume an average of $100k salaries which isn't unreasonable in the IT sector, then 10% of 1200 staff = $12m of savings. It's a good start, but not enough.

OHE need to show confidence in the top line number as well, confidence that they have a solid revenue stream and a sales pipeline, and when they expect those will be converted to customers. They 'allude' to it by holding onto the statements of moving to profit in FY2017, but of course there is no evidence to support that.

At the heart of it is where it all started. OHE have pitiful reporting, leading up to the IPO and subsequently. No investor could have any confidence in OHE's future until they realise that 'disclosure' means exactly that! Disclose the numbers, front up to the shareholders with the facts, all the facts, and stop obfuscating the truth.

99.99% chance the bank instructed him to do it and agree 100% with the rest of your post too.
The question investors need to ask themselves is why does it most probably take an external party to give the CEO / major shareholder / directors prudent management instructions that are so obvious to "blind freddy" ? If management and directors have to rely on outside influence to tell them how to run the company in a prudent manner why would one trust them to manage your capital carefully going forward from here ?