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clock Created with Sketch. 20/08/16
09:12
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Originally posted by walkingeagle
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Just_a_guy - I seem to remember being surprised to see the then bank facility maxing out at the end of March when new terms were agreed (perhaps suggesting money had been spent closing down loss-making UK activities/branches - one assumes provision had been made in the H1 P&L?). If that was correct, operating cash flow in the first 3 months of H2 will still have been negative, but I guess the underlying reasons will be reported and adjusted before reporting 'normalised' numbers. Just surmising. Whatever, cash flow in the final quarter surely has to be positive to generate confidence that management has finally got a hold on the UK business and it's starting to perform in line - and impact favourably on SGH's SP. I didn't try to work out the future effect on cash flow of all the provisions/write-offs made - the information to do so wasn't really available, but will all have been taken into account when the new facilities were agreed and these didn't show an overall increase.
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Thanks for the reply and I too hope Mel is right (drawn funds 'incase'). But if not are you thinking fy16 ocf of -60mil would be OK? I hope they do break it down to quarterly for us. I can't imagine they'll be too definitive with guudance particularly with mb circling. The main issue I have if this is the case is how they offered guidance of +205 mil ebitdaw 30/11/15... The shorters/media have screwed sgh pretty hard but sgh certainly didn't help themselves. Personally I'm hoping for fy16 ocf of 0.
(20min delay)