Ann: Head Office Relocation, CFO Resignation & Business Update, page-85

I’ve been building a position in DGL because I’m of the belief once they’ve built scale, their investing cash outflows should come down considerably and provide the business with good free cash flow.

Ive struck out the outflows that would not exist once growth stops, but the PPE expense is still higher than net operating cashflow currently.

What are people’s thoughts on how much of the $20m from last half is due to growth and how much is ongoing maintenance of their business. It is known that this industry is capital intensive, but do you guys think this line
item in green will come down significantly once acquisitions and growth slow? What would be a ballpark realistic number?

Keen to understand how much in future would be left over for us as shareholders through dividends or buybacks. Let me know what you guys think and if any comparables exist.

PS, Also using this negative sentiment in the market currently to pick up more shares.