In my opinion they have a good turnaround plan.
In the annual report they said: "We knew at the beginning of the financial year that we needed to restore liquidity to the group without delay. The R358 million cash received from the rights offer in April 2017 was used to reduce debt with the banks, but was not sufficient to fund the turnaround and debt levels remained high. In H1, the executive management team spent significant time on managing the liquidity position, including an in-depth cash flow review and engagement with our banks on covenant breaches and initiatives to retain our working capital facilities and sustain operational requirements. The sale of Grohe DAWN Watertech (GDW), Swan Plastics (as a result of the costly put option agreed to historically) and other smaller businesses generated R373,5 million. This allowed us to settle our debt and provide liquidity towards funding the turnaround. This progress is a highlight of the year as we were able to decrease net debt to equity from 93% at the start of the year to only 8% at year-end. In H2 the executive management of DAWN focused on further understanding the issues in each business at a detailed level. The deeper we delved, the more we understood the extent of the complexities we faced. It became evident that the turnaround required substantially more effort and that the return to profitability would be delayed."
Having a debt to equity ratio of 8% is really key in the current environment. I think if they continue to keep up the work they might be able to generate a profit in 2019 or 2020. Any other opinion on this share?