Underlying Loss

The reported revenue from the core operations was $157M and other revenue of some $12.6M from the sale of the Homebrand and the termination payment from Woolies. So they strip out the revenue so we know they is $157M from continuing operations but then they slide it back into EBITDA from continuing operations. There is about $12M of EBITDA actually that's not continuing ! So here is a basic analysis.

EBITDA $8.4M

less $12.4M from Homebrand sale

add back $2.9M non recurring corporate costs - Lincor cash burn etc

add back $4.4M asset impairments ( doen'st mean there won't be more ! )

EBITDA $3.3M on $157M Take away D&A of $3.5M and interest of $1.6M and the loss is $1.8M

That's a 2.1% EBITDA margin. Given they have been undertaking a "transformation " how is it the margins are so low ? Either the cost base still needs further resetting or they are facing service margin pressure on the goods and services they sell. Finally I suspect they still have inefficient operations.