In my view I wouldn't expect too much from the half yearly accounts to be honest mate....they re obviously struggling to make ends meet ..so the half year accounts aren't likely to be anything to get excited about.
On a positive the rns stated the fraud had "significantly affected the profitability", this should now be resolved as the idividual has been fired and processes put in place. Hence going forward the improvements should "significantly affect the profitability".
The rns stated "significantly affected the profitability" - hence not neccessary hand in the till job. As it was the person in charge of block making. He likely to have relationship with suppliers and involved in materials used - therefore could be getting back hander from suppliers or stealing raw materials to sell on which would impact profit directly.
If it was direct theft it would be writeoff to the P&L in the annual accounts.
In terms of cashflow - don't forget the business is expanding eg: you purchase the raw materials, labour, deliver the goods etc. Once delivered the customers have more than likely 30 day plus payment terms. We only started delivering the wall panels late Jan and were stocking up beforehand (which would have cash tied up).
Expect another RNS in next few days as half yearly accounts are due by end of March. Hopefully will have more info.
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