Exactly the same situation ocurred in 3Q 08. They reported a small net cashflow of $518K for the 3Q ($4.837m for YTD). Yet on the annual report they reported net cash flow of $10.924m. They managed to increase cashflow by $6.087m in the 4Q. It's like they made a special effort to collect all outstandings prior to year-end.
If we look at the staff and working capital cost relative to receipts then there's hardly any movement between this Q (95%) and the 3Q'08 (96%), although for FY08 it was down to 84%.
It's what we've been saying since that quarterly was released; that timing of cashflow can skew the results from Q to Q. Only management know the fine details of their cash management and we can only hope that they manage it well in terms of terms of trade on both the debtors and creditor side.
I too hope that next Q we will see the company in a better cash position as a result of additional revenue from the 2nd ship and ROV plus the $13.5m receipts outstanding. And I agree that they need to pause on the aquisition front and consolidate their position before contemplating further purchases
NMS Price at posting:
11.8¢ Sentiment: LT Buy Disclosure: Held
