They were previously burning through 17 million a quarter and this quarter burnt through $41 million and relied heavily on their finding facility which is now approaching fully drawn.
Of course bad debts were consistent as they were 87 percent of transaction income last quarter hence with increased UMS a higher demand on cash reserves.
Payments to merchants outpaced payments received from customers and they are heavily indebted to their merchants on the retailer deferred payment scheme.
The release says merchants can withdraw these funds on demand .
Without merchant withdrawals they only have two + quarters of cash left going into seasonally weaker quarters.
If retail partners start drawing down from merchant deferred payments ( which they appear to be doing) and loan facilities are secured, there is nothing left for shareholders
SZL Price at posting:
$2.44 Sentiment: Sell Disclosure: Not Held
