Good piece of analysis.One that management is afraid to share.If...

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prosperity

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28/10/22

08:06

Post #: 64445621
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Originally posted by CDO22: ↑

Revenues up, from $8.5 to $10mio, staffing costs down from $10 to $8mio. Advertising costs down from $2.7 to $2mio. Funding costs marginally down from $3.2 to $2.7mio.
If we stopped here, it would almost be quite good... Though I am struggling to reconcile the headline revenue with the operating cashflows, likely because of timing of payments/receipts. I am taking their word for it...
Corporate and admin costs up from $1.3 to $4 and we can only hope that is related to the corporate activity in the last quarter (extension of facility, SPP, capital raise). I am going to assume 1.5 going forward.
So, trying to add it all up: 10-8-2-2.7-1.5 = $-4.2, before losses. Quarterly ned bad debt of 1.4% is about $1.5mio so net loss of $-5.7mio. Does that sound right??
If so, they need to grow revenue net of funding costs by 5.7/7.3 = 78%, everything being the same. That is steep. Last quarter growth was (10-2.7) - (8.5-3.2) = $2mio or 38%. So their goal is a stretch (as funding costs are likely to rise) but in the realm of possible.

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Good piece of analysis.
One that management is afraid to share.
If the story is believable they need to share a chart of this by quarter for the last 12 months so that investors back them.

Silence on funding tells me that survival would be a miracle from here.

Last edited by prosperity: 28/10/22

OPY Price at posting: 19.5¢ Sentiment: Sell Disclosure: Held
1 Upvote

0 Great analysis

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