Confused much

Ok, been doing a bit of basic math.

Last year turnover ( on pretty ordinary utilisation ) 144m. First quarter this year 39m. If I extrapolated a likely annual result given the rise in utilisation and the normalisation of operations income for FY 20 should be 170m ish. So on this assumption 26m additional to play with. EBITDA last year 25m. Cash conversion first quarter this year 6m. Capital raise 15m. We should be awash with cash.

So one, where is the cash going? And secondly with a not unreasonable assumption of another 26m in turnover which should covert to another say 5m in cash why can’t we give guidance?

If all the cash is being spent on Deepex rigs why not articulate this. When are these rigs complete, at what cost and when do they become income producing. Not unreasonable things to declare. What do they do for the bottom line? One would hope contribute. They are not being constructed to be idle.

These guys are not telling a story. Sure with an increase in rigs depreciation will chew away at the bottom line however cash conversion should be great. They say it won’t be as good as last year yet utilisation is a mile in front and all through they have been saying the new strategy is based around contracts performing to desired margins. Also can’t fathom why you would pay a dividend and then go to market for capital. That is just dumb.

Confused much

PS sentiment changed to buy only because of the price drop and potential dividend yield