I believe none of this bonus is to be paid
That said, I agree with your rant 100%
Printable View
Woeful. Excuses again around inefficiencies. When will they ever be efficient?
What do MPG and TGH have in common ? Promotors really talked up the growth prospects when in fact they knew the prospects were extremely limited.
As Winner quite rightly pout it, investors were duped, its as simple as that and both companies have done just enough so as the way they "informed" the market about forward prospects got the very best possible IPO price but they probably haven't done anything easily actionable, which was obviously their goal all along.
Unfortunately we now have the Feltex precedent that's been tested through the courts at great length and considerable cost which has entrenched in our markets and courts the liberal way in which the courts will interpret leeway when it comes to IPO forecast and talk related thereto. Caveat Emptor when it comes to all new floats especially by private equity interests.
There always SUM exceptions to the rule but no question investors need to weigh-up (you see what I did there referencing scales) all IPO prospects very very carefully fully cognisant of the fact that varying amounts of bright red lipstick will be used by promotors of ALL IPO's. Even mutts with fleas can be made to look half reasonable with enough lipstick to sink the Titanic.
Of the total assets shown in the balance sheet as at 31 March 2017 $293.8M a whopping $163.7m was goodwill, (just $130m wasn't goodwill) including $32.4m goodwill for the Australian company acquisition which is currently under-performing. Further as noted earlier today much of the N.Z. goodwill was based upon a formula of compounding future solid growth, the basis of which has now been undermined by expert outside consultants.
One wonders how much this goodwill is really worth now ?
In note 4.2 the company says they test the veracity of their goodwill assumption every year. My guess is this won't be overtly stress tested this year seeing as the company has $137.3m in liabilities. No wonder they are keen to reduce bank debt...
Balance - A classic case of the longer / bigger the bull the longer / bigger the porkies ?
Mentioning debt reduction today a bit odd ......but signals impairment on the way and the need to remain within convenants. Clear as.
The guys who sold Metro for $366m in 2007 were indeed fortunate and good on them.
Since then they gone broke and restructured and all sorts of things and in spite of that is operationally still a very sound and solid company. But one that is not really suited to being listed if greased up to be a growth company.