staggering loss of equity

todays ann. nothing short of staggering -deserves its own thread,

Todays "Trading Update" is nothing short of staggering show of indifference by Directors - this is not a TRADING update = it is a staggering proposal to write off $40m of total assets of company of $118m (34%) - looked at another way, of the $56M of contributed hard cold capital into the company in less than 3 yrs they want to w/off 71% of this.

Mention made of 34%-37% desired w/o of debtors, stocks, intangibles.

The losses add to approx $40m but the ann. mentions the anticpated profit the company makes for 6 mths to Dec08 will be a loss of $1.8m. Hello this doesn't make sense - they want to leave the write-offs till 2nd half? Why don't they say that.

No mention as to how a material w/o will affect finance covenants...

No, this is not a trading update but a significant company re-structure proposal to write-off major capital value of the co. & even threatens the company - directors step up and address your shareholders properly with the full import of these decisions.


Or is just more crapping on weary shareholders for a marked down trade sale?

Meanwhile the subsidiaries are mostly profitable and cashflow positive?!!!