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US & UK expansion, page-8

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gosouth

2,582 Posts.

39

18/11/14

13:54

Post #: 14308154
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Originally posted by peterdoobes ↑

Agree with some of your points. Goodwill can be dangerous. However on GBT, if they were facing a write down and potentially blowing up that would have been in the GFC. At that point earnings were much lower and debt was much higher.
Net debt is now $3.6m and annual operating cash flow is around $15m. If they don't make a debt funded acquisition they will be debt free most likely by 31 Dec 2014. Lets say they also decide to write off their full $56m of goodwill in one hit. They would have negative equity of $3m as at 30 June 2014 but most likely slightly positive equity by 31 Dec 2014. The business would simply carry one pretty much debt free with zero goodwill. If profits fell due to economic conditions, so would the share price but I don't see a BVA situation here at the moment. They would need much more debt.

As at June 2008 BVA had NPAT of 1.6m and net debt of $40m

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tks for the comments peterdoobes
can I ask, are you positive about GBT? I see you hold, so there's a clear message.
do you think they can crack the US and Asia? Is their product good enough to make inroads?

Cheers
Gosouth

GBT Price at posting: $3.83 Sentiment: None Disclosure: Not Held
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