That is what the AFR is also saying. However, with the burn rates accelerating (not reducing), the task is extreme, to say the least. Below is my own abridged version of the Acid Test which basically shows that their assets cover first halved, then deteriorated on a re-stated basis in 2014 before becoming stuck in a perpetual motion setting since then (absent H15 where the benefit of several acquisitions just prior to the Dec31 half year artificially inflated the results):
Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 0 F10 H11 F11 H12 F12 H13 F13 H14 F14* H15* F15* H16 F16 H17 1 Assets 2 - Cash 30 7 4 2 4 1 20 9 25 16 97 52 82 57 3 - Receivables 67 79 96 94 128 118 131 200 184 262 574 633 529 475 4 - WIP 112 153 189 191 246 267 299 393 192 562 455 429 362 331 5 - Total 209 239 289 287 378 386 450 602 401 840 1126 1114 973 863 6 Liabilities 7 - Payables 33 45 61 48 81.5 77 92 169 191 229 613 567 464 431 8 - ST Debt 7 11 7 10 12.5 15 20 3 9 30 4 4 4 23 9 - Total 40 56 68 58 94 92 112 172 200 259 617 571 468 454 10 A/L cover 169 183 221 229 284 294 338 374 201 581 509 543 505 409 11 - A/L Ratio 5.3 4.3 4.2 4.9 4.0 4.2 4.0 3.5 2.0 3.2 1.8 1.95 2.0 1.9
F17 (if SGH lasts to then) will likely see a further deterioration given that there will be a significant shift in the debt column from LT to ST (due to the original May18 maturity date then approaching). It therefore looks like that both Skippen and Grech will have to be sand blasted out.
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