I appreciate the property market has softened and buyers are finding it harder to get finance. I also appreciate the sentiment in this sector is at a low - other good examples being MEA and REV.
Still - what a debacle - - IBN has always been an accident waiting to happen and now it has genuine macro headwinds to deal with.
Where is the innovation? Where is the disruptive business model? All I see is a determination to honour obligations for poor performing legacy businesses made by past management.
- 3 chairmen inside 3 years.
- 3 CEO's inside 3 years.
- Annual re-working of Con Note agreements.
- An AGM that proposed a 1 for 50 consolidation.
- Only to be replaced by am EGM to pass a 1 for 100 consolidation one month later.
They have clearly paid too much for acquisitions in the past that either haven't delivered and/or haven't been managed properly.
They received nothing for the remaining stake in BYO Jet (even though it still exists and the Flight Centre SP has virtually doubled since its buyout).
Now they've raised money primarily to pay back old debt and rack up new debt at 18% and hope they have something left over for working capital to survive a few more months.
McRae & Note holders must be thinking this is their Alan Bond moment in the making.
The only positives:
1) Copulos Group seems to still be buying (8.22% as at 12/11/18) and somebody seems to be mopping up in recent times at .0015 via Chi-X.
2) Nikolouzakis's performance rights for FY19 if he can hit any of his 4 targets (but that already feels unlikely).
3) The future commissions from the IPG deal might buy some time.
4) Hopefully the appointment of David Scott brings a fresh set of eyes and approach.
5) I had hopes that McCarthy could right this ship, but it looks like he has a massive job ahead of him.
It's going to be interesting as to how quickly things unfold from here.
