AGL - Accordant Group. was previously AWF Madison, Allied...

[Snoopy]

Note figures in italics in table below are estimates

	Doubtful Debt Provisions {A}	Current Trade and Other Receivables (before provisioning)	less Other Receivables (Estimates comes from FY2016)	equals Current Trade Receivables {B}	{A}/{B}
EOFY2014	$0.377m	$24.677m	$3.637m	$21.040m	1.79%
EOFY2015	$0.342m	$27.996m	$3.637m	$24.349m	1.40%
EOFY2016	$0.589m	$33.706m	$3.637m	$30.069m	1.96%
EOFY2017	$0.897m	$46.430m	$5.332m	$41.098m	2.18%

Notwithstanding that an EOFY2017 provision of $0.897m is just over 10% of FY2017 gross profit, in percentage terms I don't believe the 'bad debt provision' to 'total debt' ratio is a matter for concern. Hopefully the bad debt is now dealt with and we shareholders can move forward from here.

To some extent the 'Absolute IT' acquisition has got AWF out of jail. 'Absolute IT' is reflected in the end of year book position. So that means existing problems within AWF are diminished in relative terms by being part of a larger total. I am prepared to take a 'glass half full' approach to the bad debt position at this time. I won't be selling any of my AWF shares because of the bad debt issue.

SNOOPY

Talking of Allied bad debts are they still hoping to get paid that $1.4m unpaid bill from a few years ago?

That would be a bonus for them

In recent annual reports, the table figures are derived from section C7. Note figures in italics in table below are estimates

	Doubtful Debt Provisions {A}	Current Trade and Other Receivables (before provisioning)	less Other Receivables (Estimates comes from FY2016)	equals Current Trade Receivables {B}	{A}/{B}
EOFY2014	$0.377m	$24.677m	$3.637m	$21.040m	1.79%
EOFY2015	$0.342m	$27.996m	$3.637m	$24.349m	1.40%
EOFY2016	$0.589m	$33.706m	$3.637m	$30.069m	1.96%
EOFY2017	$0.897m	$46.430m	$5.332m	$41.098m	2.18%
EOFY2018	$0.143m+ $0.160m(*)	$42.133m	$4.149m	$37.984m	0.38%

(*) Doubtful debts for 'other receivables' as separated out in FY2018 results are not included in trade receivable doubtful debt calculation.

On the surface there seems to be a big percentage drop off in the doubtful debt provision, all due to management's resolve to keep a close eye on doubtful debts. I am not clear what the 'other' receivables are., and why there is a doubtful debt provision against those for the first time.

The $1.3m write off that Winner alludes to happened in the FY2016 year. It doesn't tally with making an appearance in the above table though. Did it come in a hurry after being swept under the carpet in double quick time so as not to tarnish the end of year table? I think all hope is lost for a return of any of that money.

SNOOPY