Daytrading Nov 20 afternoon, page-296

I would agree with you if WRR was a large company, with stable monthly revenues and costs, little changes in working capital and consistent debtor/creditor days.

In this case, cash profit could be seen as a proxy for accounting profit.

But in small companies like WRR, you need to have a better understanding of the specifics of the company to interpret the cash vs profit comparison.

There was a build up in finished goods (inventory) at year end, as WRR had to deliver on their USD3million Iriidium contract that was to be (and now has been) delivered in FY15. WRR have now received another USD3million order, so there will be timing differences again as they build up inventory for the sale of this order.