Interesting set of accounts - NTA 10c/share - borrowings around $148mil at 31Dec21 but they announced in Dec21 that they've had the facility increased to $310mil to cover the cost of opening more stores in the current half. Lease liabilities of $450mil at 31Dec21 which mainly consist of future rent payments and some lease fit-outs.
So the borrowings and lease liabilities figures will both be much higher at 30Jun22 - you need to have some faith that the margin expected from increased sales will cover wages and rents that had been discounted by Jobkeeper and landlords last year as there's not much in accumulated profits to fall back on.
IMO it would have been safer to stop the expansion into new stores at Dec21 for at least six months to see if the crowds come back to these centres but maybe they think landlords will only keep contributing to new store fit-outs in this period.
She's a gamble IMO.
AX1 Price at posting:
$1.65 Sentiment: None Disclosure: Held
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