Expect a rerate, page-45

DIVIDENDS
Year FY13 14 15 16 17 18 19 20 21
Dividends ($) 0.30 0.25 0.20 0.20 1.00 0.08 0.08 0.04 0.00
Paid a dividend every year prior to Covid !
"In the HY21 results CEO Skelton anticipates the resumption of dividends once trading is back to pre Covid levels ."
Vic and NSW are still in Covid lockdowns.

CASH FLOW FY13 14 15 16 17 18 19 20 21
Operating Cash Flow ($) 0.58 0.48 0.42 0.39 0.31 0.25 0.22 0.32 -0.04
During Covid ie 1 Jan 2020 to 30 Jun 2021
oper CF H2 FY20 = $ 0.252 H1 FY21= $ 0.002 H2 FY21= $ -0.043
Operating cash flow for the Covid hit 18 months = $ 0.211
As stated previously the suprisingly strong cash flow in H2 FY20 was mainly due to reducing working capital ( mainly receivables).
Given lockdowns in Vic and NSW oper CF in H1 FY22 is likely to be negative.

If FY21 is any guide Stay in business capex is around $2.9-1.0=$1.8 M p.a.( ie net PPE ) and leases are around $2.6 M p.a.
( see Statement of cash flows in App 4E )
This amounts to ( 1.8 + 2.6) /120.4 = $ 0.037
My point my Stay in Business version of Free cashflow is not much lower than operating cashflow.

eps significantly below cashflow in FY18 to FY21 due to significant non cash items ie impairments ( eg Taxi Licences ) , depreciation and amortisation.

p44 of App 4E
"Management has prepared cash flow forecast scenarios that present plausible downsidescenarios, mainly driven by prolonged lockdowns arising from the impact of COVID-19. Thebusiness is expected to retain a strong cash flow position through continued cost savinginitiatives and closely monitoring credit balances. These forecasts demonstrate that the Grouphas sufficient cash and undrawn credit facilities to enable the Group to meet its obligations asthey fall due."
highlight "strong cash flow position".
accounts prepared as a going concern basis - NOT on the verge of going out of business.

Strong balance sheet cash = $11.9M Debt=$1.9M , Market value of property $81M compared $10.7 shown as book value on balance sheet.

Yes Covid lockdowns has negatively affected revenue, cash flow , NPAT and dividends BUT A2B has still posted positive operating cash flow during the 18 month lockdown period. ie Resilient !

I'm patient value investor prepared to hold for 5 or more years .
I'm prepared to wait for cash flows to normalise post Covid and see if heavy spending in growth initiatives pays off.