Taking a bite at SFH, page-22

Management have already stated that the reduction in bank debt will be funded through improved inventory management and creditor terms. That's what shows in the half-year accounts, so there will be no funding deficit going forward unless you expect WC to increase again in comparison with PCP.

Several other factors could further improve the cash flow position:

- Closure of unprofitable stores reduces drag on profits and releases about $80k inventory per store
- Improved trading performance increases profits
- Renegotiation of leases further improves profits (reports that management is targeting 25% reduction)

In summary, the business performance would have to deteriorate further in order for there to be a funding deficit whereas indicators are pointing the opposite direction.