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17:35
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Originally posted by pCap:
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Just to add my two cents. ASH generated operating cashflow (pre working capital) of about $11m in 2021 which amply covers the dividend, however the working capital investment of ~$6m brought operating cashflow back to about $5m. Given their was a 40% increase in LH activity in June, the increase in working capital was to be expected. This is a nice problem to have and we'll continue to see working capital investment until the growth starts to slow down. The working capital investment should also mean we will see strong operating cashflows if this business starts to slow and the working capital investment unwinds. Trade receivables performance/collections also looks healthy, so their customers appear to be paying on time and in good financial shape.
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You've got a pretty interesting definition of modest. 4 years ago (since the turnaround in share price), ASH was 14c. That is a 4yr CAGR of 38% capital growth alone PLUS dividends....
