montgomery???, page-5

to be honest I think montgomery's analysis of BGL was not very considered. EBITDA of at least 9.5 million for FY12 will more than cover off any current year payable deferred liabilities from acquisitions as well as well and truly pay for maintenance and expansion CAPEX (run rate of circa 3 million). As people have noted the cashflows are a lot more certain (other than some lumpy contracting companies that montgomery was happy to push) and cash coversion (receiveables to cash) is very efficient. Further structuring acquistions like this is also "clever". BGL gets the benefit of the acquisition from the completion date and in effect gets an interest free vendor financed loan for the deferred part. One thing that everyone seems to overlook also is that BGL is pretty much entirely debt free. There are not too many companies running around that can display a balance sheet like that. So even though I think all things being equal it would never be needed BGL would be more than able to access debt (short or long term) to assist with any payable issues. Again I stress I dont think same would be necessary.