For this reason alone, CEO Damien Guivarra should be sacked immediately.
In spite of all the general waffle in his last update (only 12 calendar days before the half year ended) that they'd be working to resolve the arrears (which were "lagging" against internal targets) in Light Commercial by June 30 and that they'd be critically assessing the capital weighting between Silver Chef and GoGetta, there was no hint given whatsoever as to the quantum of the likely impairments.
Was the FY guidance of approx. $25m still intact? If not, then to what extent?
What we saw today was a market in shock - and only because the CEO failed to use the preceding months to inform the market clearly as to the reality of the situation. Whereas in previous years shareholders could believe every word coming from the top, we can now only distrust any forward guidance coming from this company.
As they say in business and in life, it can take 20 years to build a reputation, and only 5 minutes to ruin it. And Damien - sorry pal - but you've stuffed all of shareholders' goodwill by keeping your trap shut when it shouldn't have been. That's not leadership.
You're as good as fired.
SIV Price at posting:
$4.78 Sentiment: None Disclosure: Held
