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Ann: Half Year Report and Accounts - 31 December 2017, page-64

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ZMan

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31/07/18

00:24

Post #: 34635038
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Originally posted by Universal Exports ↑

Leaving aside the revenue accounting standard "change" - or the fact that there are 5 admitted areas of other errors which required correction set out in Note 15 - the cash flow now tells the unsustainable story. In six months:

- they collected $3.2 million from customers, yet lost $9.4 million cash just from operations
- they had to transfer a further $11.6 million into trust accounts and pay out $6.9 million in financing costs
- they had to borrow $33.2 million of debt and get in $6.3 million from issuing shares and converted options

So their current assets less their current liabilities at 31 December (excluding the contingent consideration which will mainly be settled in shares) are negative $22 million.

No wonder after five more months of that they had to throw in the towel and file for voluntary administration. If there's an ongoing business here, I doubt the numbers will approach those reported previously for a long time.

Unless they find a massive gold deposit in that Mozambican tenement.

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Why is there zero deferred revenue on the balance sheet now. Is all the cash received in advance from FC, for contracts which customers agreed to, recognised immediately? or was there zero customers sponsored by FC taking up a sponsorship?

BIG Price at posting: $2.22 Sentiment: None Disclosure: Not Held
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