Hi @austyt90I'm not sure I'm with you. In determining LYL's...

Hi @austyt90

I'm not sure I'm with you. In determining LYL's 'surplus cash' position in June 2020, I'm simply going off the balance sheet. I'm not sure what the cash flows statement tells us, in this regard. The change in operating assets and liabilities, is just that, the annual change - not their position in June.

In terms of whether or not up front payments (contract liabilities) can be considered 'free' (surplus) - well I think we should err on the side of conservatism. Clearly getting paid up front is better than having to wait until after the work is completed (and thus have it reflected as a receivable which you hope will come good). Yes it is much better - and it's a nice little feature of LYL. But it is clearly not free, in the main. The cash sits in the bank temporarily, but the bulk of it has to be spent while the work is performed (it is not profit).