Why is Property, Plant and equipment $51m, while borrowings are only $14m.
Does the equipment require a large cash collateral, and the financiors only able to lend $18m?
How much revenue can that $51m generate? is the equipment currently fully utilised?
The business seems to be a very capital intensive business, rapid growth could mean cashflow issues, as we have been seeing.
I was initially under the impression that all the equipment was under HP/lease, and that way at least the cashoutflow could match the revenue coming in.
Don't get me wrong, still a LT holder, just want to clarify.
RQL Price at posting:
67.0¢ Sentiment: LT Buy Disclosure: Held
