Hi OnyxValinvestors post is not incorrect however he was looking...

Hi Onyx

Valinvestors post is not incorrect however he was looking at a narrow window ie the last 6 monthly accounts.

My point was that the December half is the poor cash flow half for WHG due to the build in WIP and if you take a more full view - a Full year cashflow statement or consider the cashflow over the last 4 half years WHG can indeed pay dividends out of cashflow.

The net interest bearing debt over the last four periods hasn't increased significantly (up 3.2m), there has also been no raisings yet the company has paid out 39.5m in dividends over the same period.

I expect the current half year wil have stronger cashflow, although it will be somewhat lower due to the restructuring expense that was provisioned in the December accounts but will be incurred from a cash point of view this half.

Although I am wary not to give advice I do feel WHG is better purchased at the bottom end of its trading range ie closer to 80c.

I hold and collect the dividends and watch to see if Lombard can invigorate some growth into the business.

The intangibles are a negative and could be written down at some point if the business remains ex growth however this would be a non cash impairment.

Interesting to see Celeste add to their position. Frank Vilante who runs Celeste small cap fund strikes me as an astute value investor.

WHG is a dividend play and is functioning more like a bond currently than a stock if this makes sense.

If you want to understand the cash flow better have a look through the last 2-3 years cash flow statement in the financial reports.