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It's designed as a tile backer, so no, unless you're tiling onto it in which case go for it!
With regards to the wall:
- How old is the house, can you see hairs in the plaster (serious question)?
- What is on the other side of that wall?
- Was there any signs of damp prior to the top of the wall falling off eg mushrooms randomly growing out if the wall, smell of damp in that room, bubbling or peeling paint?
- How soon is the unit you mentioned goin in?
- How old is the house, can you see hairs in the plaster (serious question)?
Is a 'hardie backer board' something that may be of use to me?
I.e. scrape as much shit out as possible, then put this backer board stuff over it? It's cement based and allegedly water /mould resistant etc.