Not very clear to me what are the real reasons for this capital increase. Anyway, I find that there are several interesting elements disclosed in their presentation : - they managed well their net debt during the second half (until May) as their net debt was reduced from 252 m in Dec 19 to 208 m in May 20, while their free cash flow was negative for the 2nd half last year. According to their comments, it is due in particular to the management of their working capital (inventory and payable), - they intent to review (meaning withdraw according to what I understand) their 100 m banking facility with ANZ. That's interesting given that it is the same bank which decreased its facility with the Reject Shop. It looks like retailers will have to rely more on their own means (free cash flow, capital increase) to finance their business going forward. Not necessarily a bad thing as it will accelerate the move towards closure of non profitable stores and consolidation.
SUL Price at posting:
$7.81 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)