Ann: Skilled Group to be acquired by Programmed, page-35

Hi V good to hear from you.

Yes it is that announcement that makes me think it’s written off rather than paid. It’s gone from accounts payable – straight to the P&L.

Considering the original transaction was effectively Dr Goodwill and Cr Payables. This is accounting smoke & mirrors 101 on how to capitalise 4.5 million of thin air profit to the balance sheet.

I would expect a transparent management to impair a corresponding amount of goodwill simultaneously – but it didn’t happen. It’s not that material in the big picture and there may even be defensible argument that overall the goodwill from the transaction is not impaired but it doesn't smell real flash to me - actually it smells almost as bad as the T&C purchase, seriously 22 Million goodwill for that junk.

Happy to have PRG management taking over.