I got some more details from the Company on this.
The Finance Lease COGS in the P&L only represents the Radio Rentals business, TEF does not figure in this. So the TEF line in the cashflow statement relates to the purchase of assets which are then rented to customer.
When the assets are "sold/rented" to customers, Thorn de-recognises the asset and books the lease receivable for the present value of the future lease payments, which corresponds to the value of the asset (so no gain immediately recognised).
PP - your post makes sense and got a similar answer re the sustaining capex, thanks. I'm pretty comfortable now re their ability to generate cash, the last few years of results has hidden the cash generative nature of TGA. Hopefully the next few sets of results will make it a bit clearer.
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