AGM Soon - News, page-4

Yes, you're right needle about free cash flow for this fiscal year.
$ 40 m is possible when you look at :
- the free cash flow they had last year (28 m, corrected of JobKeeper),
- and the fact that the company expects to reach an underlying EBITDA of 23 to 25 m for H1, similar to what they did for the full year in FY 20.

Of course, we also know that these figures are driven by some significant one offs :
- jobKeeper which will provide 6 m in FY 21, like in FY 20,
- but also a significant improvement of the motorcycle market in FY 20 and for Q1 21.

Anyway, these elements enable a significant improvement of their financial situation, which justifies a re-rating of the company (which had a large pile of debt pre-covid).

Interesting also to note that the stock is still cheap if we look at their potential free cash flow of around 17 m, based on their underlying EBITDA in FY 19 (before the improvement of the market) and the low level of Capex that the company plans in the short term.
Based on these elements, they still have a free cash flow yield of 10 % (at 2.56 $ per share).