Looking at the performance of this company is very worrying and...

Looking at the performance of this company is very worrying and the lack of information to come from management is even more worrying. They reported a rise in Revenue, EBITDA and NPAT however they are failing to tell the real story here an that is as follows

Current cash $266K ( which is down right embarrassing and extremely worrying ) Vs prev half $209K
Trade and receivables $48M Vs $45.2 prev half- which is fine given the lift in revenue
The only way the company is currently surviving is via a debtor finance facility or the like. What if the bank pulls that? The 2 options would be running around frantically and signing up to ridiculously expensive facility where the lender knows the trouble you are in and sticks it to you with sky high fees and who knows what other covenants, or call in the administrators. The risks that management are exposing shareholders to is just stupidity in the pursuit of revenue growth
The big thing is Current Trade and Payables $61M Vs prev half $51.6M. A $9.4M rise in money owed to creditors in 6 months. So in effect they have burnt $9.4M in cash in 6 months. Even if you subtract the rise in receivables of $2.8M its still a $6.6M in deficit in 6 months in just creditors
How long can this go on for?
Serious solvency questions have to be asked
And i think the main question is Management and the quality of it. The current MD is largest shareholder and the majority of the current situation falls to his management however does he have any decent people surrounding him? It seems all focus is on growth and very little on anything else. Does the current MD not see the below?
At the rate this is going it is going to end up the next Brierty. Heading in the exact same direction.

After writing the above i have just read Notes to Financial Statements for period ending 31/12/2022 put out on 27 Feb 23 and under heading Going Concern first line - The group had a working capital deficiency of $27M as at 31 Dec 22 ( June 22 $16.5M ) ....
And then goes on about a material uncertainty to continue as a going concern. And then further down the Auditor HLB Mann Judd draws attention to Material uncertainty to going concern

This is even worse than originally thought