Ann: FY20 Results Preview, page-3

They had $24.7M cash on hand 31 December (now $27.5M), with Covid hitting sport extremely hard, I must admit this is an unexpected shock IMO. Looking a bit deeper into the announcement, one key fact is missing... They have taken on a small amount of debt and H2 actually had negative cashflow. See below H1 had $13.6M FCF and cash position was $24.7M - so they have taken on about $5M worth of debt (which is no problem, CAT have essentially no debt)....

I am extremely happy with the way management has reduced expenditure to achieve this result, so many companies have been forced to go hat in hand to funds looking for money and significantly diluting the register. CAT's being debt free was one of the key reasons I invested with a long term view, and IMO they have leveraged the Covid situation well.

Last time CAT raised capital it was at $1.10 per share, raising $25M to drive elite and prosumer growth (2018), back then they were targeting $75-80M in revenue for FY18 and had operating expenses of ~$50M per annum. Since then they have driven revenue to >$100M with operating expenses of ~$23M in H1 (or~$46M per annum - but will be far less in H2) - which clearly shows the scalability of the business (+$20M revenue for -$4M operating costs)... I would hazard a guess that operating expenses have reduced sharply in H2, which IMO provides a profitable and stable base.

When there is no safe haven for money (zero interest rates) fund managers are looking for profitable growth, and I believe this report will be well received.

Lots of risk present though... not many sporting codes making money due to lack of crowds... So world still needs to kick this Covid battle.