It's due to acquisitions and growth. It's worth recalling that...

It's due to acquisitions and growth. It's worth recalling that PCP was a lockdown affected period, which post that led to a rebound in activity and sales, which requires investment in inventory i.e. tyres etc. We know this because inventory almost doubled YoY to $11.6m - this is what you're seeing in the cashflow. To check that it's flowing through you will note that trade debtors has also increased by ~50% to $6.4m. This will turn into cash once it's collected.

In effect, the Group is in investment mode both in terms of acquisition but also scale up as it tries to leverage cross sell and the re-opening theme.

This is a classic roll-up play. Buy small businesses aligned to the Group on low multiples. Extract cost and revenue synergies and leverage the multiple arbitrage. As the business grows and demonstrates improved operating leverage, profits will increase leading to multiple expansion. That then compounds the arbitrage play when it acquires more businesses. The TAM is pretty large and there are a lot of medium sized businesses for sale that would complement RPM.

Smart play, good industry, under the radar, insto supported, well funded and strong management/shareholder alignment. Just bottom draw this and come back in three years.