growth in uk, page-6

Anyone can advertise. Spending money on TV is hardly a competitive differentation.

Something else must be going on here, and I don't understand the dynamic well enough. Someone else in this thread suggests they are expanding product offerings into an existing store base. That might explain most of the growth, but to grow so fast and with profitability is either extraordinary execution or alternately some clever accounting.

We have no free cash flow here. And what is cautionary is that the operating cash flow is not growing in proportion to the increases in net income. So you cannot attribute all of the cash flow issues to increased capex spend.

If you look at the last two quarters sequentially, sales and net income are up about 10%, while accounts receivable is up more than 20%. So a lot of our net income is simply attributable to accrual accounting and is not following through as cash flow to the business.

None of this proves that this isn't healthy growth, but it is cautionary and needs to be closely watched. I really dislike businesses that cannot flow through income statement growth to the cash flow. The only times I have been scammed by investments is when the companies stuff improved sales into accounts receivable.