VIL - Veritas Investments Limited

[Rep]

And whilst the market might make that value, it would be a significant fall in cashflow before VIL actually books an impairment to goodwill unless their WACC gets to something like the original acquisition prices.

At which point, it would be approaching break up value!

[winner69]

And whilst the market might make that value, it would be a significant fall in cashflow before VIL actually books an impairment to goodwill unless their WACC gets to something like the original acquisition prices.

At which point, it would be approaching break up value!

For a laugh i did the old z-Altman insolvency predictor thing

Score 0.8 and if ignore the $26m of retained/cumulative losses its 1.6

Credit guru says - Z-SCORE BELOW 1.80- Probability of Financial embarassment is very high. (I always add UNLESS DRASTIC ACTION TO FIX THINGS IS TAKEN)

Bankers running the company I reckon.

[Rep]

For a laugh i did the old z-Altman insolvency predictor thing

Score 0.8 and if ignore the $26m of retained/cumulative losses its 1.6

Credit guru says - Z-SCORE BELOW 1.80- Probability of Financial embarassment is very high. (I always add UNLESS DRASTIC ACTION TO FIX THINGS IS TAKEN)

Bankers running the company I reckon.

If they aren't then unless they make some major operating improvements then just a matter of time before bank says enough.

[benjitara]

....and in the case of verItas the market says that is about $48m at the moment

I'd get a valuation a far bit lower on my calculations, which are simplified into the buffet thinking of risk free rate etc..

[Beagle]

Yeap, make no mistake this company is trading at the behest of its bankers and is presently technically insolvent, (current liabilities due in the next 12 months exceed current assets).
Bank calling in PWC can reasonably be interpreted that they've lost confidence in the directors and management.
Binary event coming here folks depending on the outcome of the PWC report and its recommendations. On one hand receivership and on the other limping along and trying to make a go of things after more restructuring and even more heavy "one off' provisioning costs and "one-off" restructuring costs and not to forget the potentially very hefty "one-off" PWC consulting costs. This company is a real mess and the only question is, is it very badly bent or broken completely... ANZ will be the one making the decision so I suppose it doesn't matter what we think.
Disc: Don't own...too risky for me. PPL and this in receivership before Christmas...in that order, that's my prediction.

[winner69]

Trying their hardest to resurrect the Burger King contract - eat humble pie and hope for the best?

That's how I read this
https://www.nzx.com/files/attachments/231038.pdf

[winner69]

Trying their hardest to resurrect the Burger King contract - eat humble pie and hope for the best?

That's how I read this
https://www.nzx.com/files/attachments/231038.pdf

No resurrection over Easter (at least with Veritas)

Winding the pattie business up

That ends that little saga in Veritas's short history

No problems - not a continuing business so wont impact profits or anything

[Beagle]

Didn't I hear the other day that yet another Mad Butcher store went into receivership...might have been on the radio ? Suppose that's another one-off so won't be counted above the line.

They'll have to come up with a new sort of normalised EBITDA soon...suppose they could call it EBEFOREEVERYTHINGELSE

[janner]

Didn't I hear the other day that yet another Mad Butcher store went into receivership...might have been on the radio ? Suppose that's another one-off so won't be counted above the line.

They'll have to come up with a new sort of normalised EBITDA soon...suppose they could call it EBEFOREEVERYTHINGELSE

Mount Wellington. One and a half weeks ago.

[Beagle]

Mount Wellington. One and a half weeks ago.

Thanks. I see they've sunk to yet another all time low.