TRS, H1 guidance and dividends, page-4

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Thanks Didak - Couple of points to add from me:

- There was a large unwind (benefit) of working capital in fiscal 2017 because of w/c investment the prior year (from memory it was due to the timing of the 53rd week). Accordingly, I wouldn't expect that to be repeated;
- Even though I expect cash to be >$20m at the half, I still expect it to be low to mid teens at the full year (given cash balances are seasonally stronger at the half as they have collected all their Xmas sales in cash). This is the case even if NPAT is $17m. These estimates are based on neutral working capital movements and $16m of capex for the full year. Although capex could be less, I'd be concerned if it was much less because they need to invest to maintain their store network and support medium term growth;
- In any case, cash balances should be healthy and the discussion 6 months ago regarding bankruptcy is off the table.

Although my earlier comments were on the conservative side, if they hit their half year earnings and deliver a healthy dividend, market sentiment is likely to shift very quickly to the blue sky for TRS and the share price growth could be significant. The $9 mentioned by other posters could turn out to be conservative.