Thread to discuss financial matters so I don’t clog/derail the Chart thread.
With WSI at a low SP for much of this year, I think problem here is WestStar are yet to demonstrate they can be reliably profitable.
The last three quarters have delivered shareholders with operational costs higher than revenue (corporate costs excluded). So WestStar have had to raise a handful of times in the last few years to ensure solvency and even now despite over $10 million in revenue each quarter in the last 12 months, they still maintain their $1 million working capital facility. Increased corporate costs (Up to just under a million dollars last quarter - I think largely due to the AllType acquisition) are being funded by cash in hand which has dwindled from 10 to 6 million* (amount is pending outstanding receipts received in April - nothing provided other than that it is “significant”).
If they can fix profitability, there’s no way this won’t rerate to a more favourable capitalisation.
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