Sure hope so, but unfortunately the report doesn't actually mean...

Sure hope so, but unfortunately the report doesn't actually mean that at all. It just means that they had positive cash generation in the quarter.

This could have happened a couple of ways:

1. They held off on paying suppliers at the end of the quarter to ensure that the cash position looked stronger at year end.

OR

2. Customers made payments to them to spend the money at the end of the year. This is extremely common in government departments. I seem to recall that AYG has a number of government clients, so I suspect that this did happen. (Government departments often need to spend their budget or they lose it for the following year).

Could be the sceptic in me, but I suspect possibly both of the above happened...

Hopefully this is not the case and the company has finally turned the corner!

Regards
Marv

(Long suffering AYG shareholder).