Azure Healthcare Revisited, page-10

All good food for thought afterlife, appreciate your thoughts.

Tellingly, the company can point to positive operating cashflow in 2H2017, although only just! But if you exclude changes in working capital (they built up the inventory position in Texas), it becomes about + $0.5m operating cashflow in 2H2017 - pretty reasonable at this point in the transformation once that's annualised. Whether it is sustainable of course is the big unknown!

Perhaps another capital raising is in the offering as a buffer, and we have to factor that in to our asset allocation decisions, but much will depend on the view of the ANZ Bank. I see that borrowing is still classified as a current liability so we will have to wait for the Annual Report to find out if the $2m facility is still in place, and for what period.

While clearly a company with a poor record on strategic management, the risk/reward does appear to be reasonably appealing at the moment IF we see continue to see improved execution.