Ausdrill’s asset impairment

Ausdrill confirmed what the market had long suspected: asset write downs are coming. The company will realise an additional $60-90m of impairments in its full year results. With over $60m of goodwill on the balance sheet, most of that figure is likely to reflect intangible assets but some equipment write offs may also be included. The share price reacted strongly, falling almost 15% as the news was announced. With Ausdrill’s share price trading at just 35% of book value, impairments appear to be baked into the valuation. That wasn’t why the share price tumbled. The company also revealed that...

Ausdrill confirmed what the market had long suspected: asset write downs are coming. The company will realise an additional $60-90m of impairments in its full year results. With over $60m of goodwill on the balance sheet, most of that figure is likely to reflect intangible assets but some equipment write offs may also be included. The share price reacted strongly, falling almost 15% as the news was announced.

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