The reduction in receivables over the last 12 months is impressive, even stronger in the second half.
Finished goods don't appear to have blown out and on their call they mentioned that they aren't worried about expiring inventory.
I wonder what caused other expenses to almost triple, maybe covid related? From one of the AASB 16 notes "...offset by a reduction in other expenses (reclassification of lease expenses) of $795,000." So on a YoY basis other expenses could be 3.6x.
If Selling and administration expenses snaps back to 2019 levels then earnings would become a loss and they also mentioned that the government subsidies that resulted in that reduction reported will be rolling off soon so if sales don't rebound also then could be tough times ahead. Hopefully a good buying opportunity but like I said in my other recent post about the historical market prices for SDI it might takes years to bottom out.
SDI Price at posting:
69.5¢ Sentiment: Hold Disclosure: Held
