I have had a read through the prelim reports and looks grim as far as I can see. 170m net debt, normalised EBITDA of 38, so over 4x gearing. Negative operating cash flow of $20million. Flagged will be in breach of covenants. The bit of outlook they provided was also pessimistic.
Where will the cash come from? I like to look at the cssh flow statement first when companies are trading low and highly leveraged.
