CAJ 1.59% 32.0¢ capitol health limited

Lifesaver capital raising, page-16

  1. 10 Posts.
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    If profit margins are <20% and drop is >30% it is not sustainable for long . Base line costs are very high and if break even point not reached on daily basis cash flow becomes rapid major issue when next fortnight pay is due. I am sure rental and suppliers and lease costs could be delayed but this is a cascade effect .
    If supply’s are turned off ?? Some tests will grind to a halt. Any sites which are mediocre / borderline can rapidly become unviable and a few good ones have to carry entire business . Even if lockdown is switched off it will take months for confidence to build up . Only about 30% services are essential and most of the others can be delayed. People won’t be rushing to get radiology unless they have to . So the question is how long is survivable and even if it comes good the catch up will take 2 years .
 
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