Not true as I see it The requirement to support Morrisons is now reduced to $12 million of which 90% has to be in cash. So that's $10.8million call it $11 million and they owe a maximum of $1 million for Libertas so that's $12 million versus cash of $18.8 million at year-end, Net working capital is up from $4 million to closer to $9 million.
If you look at last year which was a shocker the cash flow was still positive from operations so in a normal year I would expect they deliver at least $1.5 million in cash from operations.
On this basis, they have more than enough internal cash to invest in either the buyback or in other acquisitions. I am not surprised that they have not bought shares back as the share price moved into the 20'c and I don't think that's the market - they should take out the overhang and at cheap pricing. So it will always be a trade-off. It only becomes an issue if we have to issue shares for an acquisition. Right now they have around $6 million to play with as I see it and dont have to issue shares.
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