Its unfortunate when an unprofitable (and indebted) company like Tritium fails but the relevance to Core is limited, except to show Core is not in this sort of basket case territory.
So Tritium was effectively in the compete with China in the EV charger manufacturing space. Many companies across many industries are struggling to compete with Asian manufacturing hub's. Tritium were basically selling product at around cost and then not covering all their other operating costs. As they expanded production they continued to sell near cost and other operating expenses increased keeping total losses large.
As you did correctly point out a few days back, its important to look at the balance sheet & cash flow, not just the "spin" in the P&L.
Core's statement of cash flows is below. I've however substituted the Dec22 half year for the June 2022 and 2023 full year results. This therefore shows the cash flow from operations position across July 2021 to Dec 2023. Over those 30 months Core generated $30m in cash flow from operations. A key reason for a higher June 2023 result and lower Dec 2023 result is a big prepayment within the $134.7m total. This clearly isn't enough to cover ongoing capital development costs, but it is generating cash flow from project to date operating activities.
Compare that to the basket case that was tritium you have chosen to put into Core threads $80m negative last year increasing to $151m this year:
Ok lets then look at the Balance Sheet. One of these entities is in serious trouble (and closing). The other has a strong balance sheet.
Features of Core's balance sheet:
- Cash and cash equivalents of $124.8m at Dec 2023
- Cash trade receivables less trade payables $103m
- Total assets (after recent write-down's) of $393m
- Bank and corporate borrowings of $0m
- Total liabilities of $97m (If term provisions are excluded this reduces to $65m)
- Net equity of $296m
Features of Tritium's balance sheet (which is completely stuffed):
- Cash and cash equivalents of $29m
- Cash trade receivables less trade payables $0.5m!!!
- Total assets of US$286m (heavily dominated by inventories)
- Bank and corporate borrowing $195m
- Total liabilities of $420m
- Net equity of ($134m)
(20min delay)