Bullish, page-88

People are only fixated on growth and disruption... Beyond the franking credit debacle,most haven't noticed Z1ps external cost of funds for the half year, circa $9m, were basically equal to their cost of write offs - also circa $9m for the same period... And thats really only telling under half the story, as the age of these receivables are like 150 days past delinquent, so they relate to a book, circa 12 months ago, when the book was $200m ... not $500m... so Z1p are actually writing off around 10% of their book p.a and this is being entirely masked by growth... ask growth slows, this business is swamped with further arrears ... If you have a business that is trending to 18% of book as topline growth, but is losing 10%+ of that straight away to write offs, 5-6% then used to fund the debt... you only have 2-3% to run the business... utterly flawed economics.