ANO 1.94% 76.0¢ advance zinctek limited

FY 2019 Profit Forecast, page-26

  1. 133 Posts.
    lightbulb Created with Sketch. 3
    So initially I thought this as well.
    Note 11 'Goods in transit' ($99k in cost) would suggest this is not the case.
    Maybe around $200k of revenue was 'in transit'.
    That makes it a $700k miss still.

    My take on this is that ANO paid up front in costs for materials/WIP, with revenue lagging. Causing the low cash flow.
    This happens with all growing companies (on a side note - read 'Shoe Dog' where Phil Knight talks about the cash flow issue Nike had for years whilst it was growing).

    I suspect the revenue forecast is under baked. All that is required are confirmation of more demand for an upgrade.
    That explains the planned increase in capacity.
 
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