Profit taking, page-409

VB - yesterday's announcement should put to bed your worry about dilution to fund $20B in transactions? You were estimating there'd be a 50% dilution through capital raises to fund that level of sales.

Well from the company we now know they can fund $16b above current run rate (current run rate $7.2b), so can fund more than $23b without raising more capital.





Also assumes conservative gearing levels...




You can calculate this yourself pretty accurately -

They have $232m cash, $445m receivables fully funded by cash, and $950m in undrawn funding facilities. Together this adds to bring about an ability to fund $1625m in receivables. They're currently turning over their receivables 16x/year, $600m TTV in June alone and only $445m receivables, so 16x annualised because we know they pay off in < 30 days.

16x1625 = $26b TTV funding capacity. They said $23b so around the same.

Can check if it is with conservative gearing levels - $627m funded through cash, $50m through a bond and $950m through warehouse debt. This gives roughly 61% gearing, much lower than Z1P's 90% gearing.