I did buy some CKF other day around $5 thinking it was cheap. My mistake for not really reading half yr accounts. I think these guys can be in real trouble.
If you take six months revenue and take (3/2) - assume all stores closed for 3 months
assume staff cost and lease payments as fixed; I get there 12 month op cash flow (pre int) at about (A$96) - yes a negative number.
And they have to pay interest as well.
They had only $77m cash in Nov
Looking at the debt note Working capital facility left is not much. Someone will have to give in, cut staff hours, or delay lease payments, or restructure debt (not ideal in this situation) or a capital raise.
All this is pre capex program.
This is very high level, back of envelope calcs. I hope I made a mistake and reality is not this bad.
(20min delay)