forget the P&L, thats not worth the ink to print, barely "yield" 2% even with the accounting anomalies! You could use the cash generated from sales in a term deposit and yield better...
THE BALANCE SHEET IS THE PROBLEM. BIG, BIG PROBLEM.
MOZ is perpetually chasing its own tail.
Over time, Sale of inventory is not yielding sufficient margin to cover their own COG + all overheads + repay creditors. Then multiple loans added for working capital and to support the future inventory purchases leading to further death cuts. Loans must take priority and come with many caveats + INTEREST (of course). So what has to suffer? CREDITORS - especially:
1) Trade and other payables OWED $184 MILLION (up $6m). 2) Lease Liabilities $40m (shops must close...)
These dwarf all other categories. Notice how Trade payables are >$60m HIGHER than inventory of $123m???
said it for years - broken business model. Sales margins just cant cover overheads, staffing, debt costs, lease costs etc and provide sufficient buffer to pay down the unsecured creditors of trade payables which CONTINUES TO GROW as a result.....
MOZ is on borrowed time...the new CEO will have to hit the ground running - going concern IS a major issue here. Either margins have to lift (have you seen the quality??) or stores have to close/brands drop off....and now with Ezi buy again.....another nose bleed has been added back...
$24.7m in cash, heading into a tight quarter....ouch.
gltah
MOZ Price at posting:
15.0¢ Sentiment: Sell Disclosure: Not Held
