Ann: Hills FY16 Half Year Results, page-22

Westcoast

I don't think they are "listening" to their bankers .......the banks will be "telling" HIL what to do........this is evidenced by the march 2016 timeline .........

it is inconceivable that SG&A >22% .......a "reasonable company" is <12-15% ....a really good entity is like 6-8% ......

sadly - it is going to get quite a bit smaller ......quite quickly (imho).....

imho - the company has a couple of options:

1. identify land / buildings that the company owns, and do a sale - lease back type deals
2. indentify which parts of the business lack scale, and find a buyer (there are a few in the medi products / techo space).
3. work out if the company actually wishes to "make widgets" (aka hills hoist etc) and get back the IP / manufacturing (or control thereof) and "own the market".
4. get inventory under control ...... (eg the Masters deal means you are reliant upon a third party to manage inventory ........not ideal...)
5. remove the obvious excess layers in middle management .....and get the SG&A down to say 10-14% .......
6. renew the Board to show the market they are actually serious about shareholder wealth generation.....

if they don't do anything - it is going to get messy ....quite quickly (imho).

rgds
V_H