Just going to try put some potential observations out before tomorrows release, particularly for some YoY comparisons against Q4FY20..
Re: Cashflow
- Of the last 8 quarters, Q4 FY20 is the ONLY quarter to have had positive net cash flow from operating conditions (+6,440,000), however 7.56million was received in government grants. Just wanting to relay this message on the front foot as I can already foresee commentary regarding a bad comparison YoY. Excluding grants, cash flow was -1.096m. (possibility to attract negative attention, my man Karl to spin into a positive)
- Q4 FY20 has the largest amount of non-recurring staff costs at 2.301m, can't foresee any costs being incurred here in this quarter. Which should make net cash flow look better. (positive)
- Q4 FY21, can't recall any non-recurring legal fees being required, which if minimal will be another improvement on cash flow compared to previous quarters, this has been an absolute killer for the past 4 quarters at least. (positive)
- Q4 FY20, Movement in exchange rates caused the most material decrease in cash equivalents for a quarter (-2.21m). This trend has turned in this quarter as mentioned by others, so we can come to expect a net increase here (another positive).
- I haven't followed to closely, but be interested for insight from anyone else as to the massive increases in administration and corporate costs (item 1.2 (f). For the quarters following FY20 these have increased relatively dramatically to 656, 2578, 3379, 3319 in each quarter respectively. (plateauing by the looks, should be offset by growth in cash receipts)
- Keep an eye out for "Item 6.1 Aggregate amount of payments to related parties and their associates included in item 1." (payment to exec directors and fees to non-exec). This has also been growing considerably, which is interesting given macro environment and company performance.
| 6. Payments to related parties of the entity and their associates ($A'000) | 30-Jun-21 | 31-Mar-21 | 31-Dec-20 | 30-Sep-20 | 30-Jun-20 | 31-Mar-20 | 31-Dec-19 | 30-Sep-19 |
|---|
| 1 | 6.1 Aggregate amount of payments to related parties and their associates included in item 1. |
| 508 | 532 | 424 | 352 | 954 | 1,462 | 564 |
|---|
Overall. I'm expecting a positive announcement tomorrow. They have signed some larger clients in recent quarters, which hopefully is translated into cash receipts, along with some other items (ie. exchange rates, no more recurring legal fees, staff costs) being in their favour.
Chart showing double bottom out. Onward and upwards.
(20min delay)