Well, FLT is done. Rest in peace - they'll be remembered...

Well, FLT is done. Rest in peace - they'll be remembered alongside Sears and J.C Penny.

Despite the terribly written ASX announcements (FLT should change their publicists...), I can't understate what a significant red flag changing their accounting policy from traditionally separating general and client cash, to general and unrestricted cash. The only reason I can think of as to why they would have done this was to distort the fact that FLT does not have $1.9bn in cash as a significant proportion of that is cash held on trust for customers. $708mn of the $1.9bn in cash is money held on deposit to pay for customer's trips (client creditors). It's fairly easy to deduce client cash based on client creditors as they should be ballpark the same...

Even if their cash loss improves by c.100% from c.$57mn to $30mn (i.e. volume improves by 40% from what it was in July to an average monthly TTV of $300mn), based on my envelope maths they can only trade for 10 months without breaching their debt covenants ($350mn in cash). This doesn't even consider the collapse of gross margin due to FLT losing air overrides and other kickbacks which are based on volume, nor the fact that the CY 2H is FLT's historically poorest performing half. To add pain to misery, once Job Keeper ends, their position deteriorates by an addition what? $15mn a month?

Sorry folks, I think FLT will be in VA by Christmas. I can't see the banks providing more liquidity given the environment. I also now understand why Skroo has been on TV lambasting the premiers about the border closures - if FLT can't stem the bleeding in AUS leisure where most of the cost base exists, it's all over red rover!

Even disregarding the above, do you really think a company in this much peril deserves an EV of $3.5bn? only 15% less than what it was pre-COVID? FLT should be worth a significant amount less - in the $3-$5 per share.

FLT's corporate business is a gem and will fetch a pretty penny, but unfortunately, the business at large is nothing more than a relic of the golden age of travel.

DYOR - above is my opinion only. Enjoy!

	General Cash1	1,158,961
1	Working Capital	(366,476)
2	Client Cash (Estimate, based on Creditor)	708,346
3	Client Cash (Creditors)	(708,346)
4	Trade Receivable	319,596
5	Financial assets	36,321
6	Other current assets	214,415
7	Trade Payables	(494,664)
8	Lease liabilities	(134,219)
9	Other current liabilities	(307,925)
10
11	Borrowings	(462,182)
12	Current Borrowings	(211,668)
13	Non-current borrowings	(250,514)
14
15	Net Cash	330,303
16	Cash outflow per month	(30,000)	(Conservative, net of job keeper)
17	Months of trading	11.0mnths
18
19	Illiquid Real Assets	287,310
20	PPE	153,392
21	Other Assets	240,020
22	Other liabilities	(106,102)
23
24	No Claims / Recourse	775,573
25	Intangibles	761,864
26	Investments	34,760
27	Right of Use Asset / LT Lease Liabilities	(21,051)