JGL 0.00% 3.8¢ jackgreen limited

Ann: Jackgreen sets sail for 2010 results with ca, page-4

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  1. 330 Posts.
    re: Ann: Jackgreen sets sail for 2010 results... Interesting

    Who was the $1m debtor? BBP? For their power bill? Gross payables 11.921 at half year, so was significant relief.


    OK, 2.5m cash, coupon 12% so it will add $300k to cash outgoings per annum, 75k per qtr.

    From the 4C statements,

    Quarterly (All $ in 000)

    Employees
    September...-1226
    December.....- 891
    March..........- 952

    Running rate say -1000.

    Advertising and leases
    September...-745
    December.....-673
    March..........-460

    Running rate say -500.

    Net Customer Receipts (Customer receipts less other working capital, item 1.2(e) in the 4C
    September...+ 238
    December.....- 126
    March..........+ 947

    This is obviously the big question mark. Can they recover the money their customer owe them? Or do they just keep growing working capital deficits?

    So, Running rate say + 300.

    Therefore

    Running rate quarterly
    Employees ...........-1000
    Lease & Advert.... - 500
    Net Customers.....+ 300
    Interest..(new).......- 75

    Estimate burn rate -1275

    $2500k will therefore last 6 months, assuming the advertising expense was reduced in the cash tightness of the last 2 months (while they were suspended).

    So, the new $ will allow them to reach fiscal 2010 it won't allow them to reach calendar 2010.

    If the wholesale market stays low (as it was over summer)then they might get another 600k (the difference between +947 net customer and the estimated running rate of +300 net customer). So, another 6 weeks of grace, give or take.

    Unless the directors can announce actual results (or credible plans) for improving cash burn.

    IMO, not enough information.
 
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