The Elephant in the room - SGH's future, page-164

Apologies for the poorly drawn graph, I put it together in about 5 mins just in the hope of demonstrating how I visualise SGH cashflow, based on all the reports and expectations. On the left we have the 2016 financial year and on the right the 2017. The red mark on the graph marks half year, the curved line represents 'cashflow'

By any means the graph should not be determined with values specifically, but one might imagine how these trends emerge in the form of curves when performance improvement programs are in place. More specifically, that quite a bit of the PIPs were implemented through H2 2016, and are expected to be showing results from some time in Q1 17 and beyond. H1 16 was a total loss, with all months being under. H2 16 was approximately 50/50, with a fair chunk of expenses going toward financial restructure & PIP implementation costs. However what is hidden the crossover from negative, to positive cashflow, which "should" become evident in the report for H1 2017 and beyond.

Naturally, this is my own interpretation, please don't take it as fact as it is how I view the company only. But it may make sense to some people. Note this assumes a linear recovery, it is probably more likely that expenses will be incurred in H1 that aren't incurred in H2 and vice versa, with revenue potentially also being 'lumpy'.