Had a good look through the accounts. Overall a bit...

Had a good look through the accounts. Overall a bit disappointing. Am very focused on cashflow as it is harder for accountants to fiddle with. Vast improvement in the last 6 months vs the prior 6 months. Overall cashflow was about $3M outflow once lease principal payments and plant and equipment are accounted for.

Seems free cash flow hit 2/3rd of the projected improvement from the xmas slides over the last 3 months (3.8M vs 6M projected). If I apply that margin to the rest of the slide then free cash flow will be about $27M next year. Out of that you need to take $6M of lease principal payments and $3M of capital expenditure and $1M of shares issued in lieu of expenses to get what I would call 'real' free cash flow of $17M for FY23. Let's call it $15M. Their EBIDTA guidance for FY23 is down about 20% from the xmas slide. Still don't really understand how they are projecting such a big increase in cash flows without a corresponding increase in EBITDA unless there is a big increase in depreciation, prepayments or reduced lease payments. Perhaps the lease payments are front loaded?

Working cash the other way from EBIDTA growth of $7M (EBITDA to grow from $17.6M to $25M in FY23) and reduction in capital expenditure of $3M gives a boost to cash flow of $10M. Approx. $7M of free cash flow in FY23.

So I guess I am expecting somewhere between $7M and $15M of free cash flow in FY23 after capital investment and lease payments.