News: SIV Silver Chef Posts FY Total Revenue Of $287.1 Million, page-31

Well I can see your points @Pardner , and you are correct, and I am wrong. That is what they are saying, and I seem to have disregarded it.

They were saying in the results summary pres of 30/8/18 that hosp pre overhead was 34m, and overhead was 17m. So they then get 17m UPBT based on last financial years conditions. So they are allocating $10.5m of their overhead to GG? Its not clear whether they have allocated on the basis of the ratio of revenues or some other ratio, or are they actually able to take out that overhead? Obviously there will be unit expenses they can reduce for a start. (I'd more have them as CODB and not overheads as such).

At the H1 2017 their unallocated LBT was 54% of the FY unallocated LBT. That would have predicted FY unallocated PBT of 25.9m, and we got 27.5m - which is higher - so there aren't signs of overhead being reduced at this stage.

In 2017 there were 11.3m of impairments and losses on sale in the Hosp div. I wonder if any of that has been subtracted to get that result as ordinary business.

I early had my numbers as "On a full year basis - if you mormalise the impairments and BDDs down to 6% of revenues, and imagine away GG, you get a segment PBT of $36m, then subtract corp overhead of (lets say) $25m, then subtract an extra (say) $8m interest and you have a $3m PBT as the new normal."

FWIW I'm going to raise my view of new normal or this years underlying earnings on a forward basis, as I have been too high on unallocateds: "On a full year basis - if you mormalise the impairments and BDDs down to 6% of revenues, and imagine away GG, you get a segment PBT of $36m, then subtract corp overhead of (lets say) $20m, then subtract an extra (say) $8m interest and you have a $8m PBT as the new normal." At the next half results, or once GG and the capital structure are sorted, I'll change my view one way or the other. $11m PBT would be my view using their unallocated share of overheads of $17m.

If their underlying PBT is realistic, there is still the reality of higher interest costs and a possible lengthy timeframe to reduce the overheads that reduces what can be expected this coming year.