I have been traveling this week so did not have time to fully read the interim report but on doing so found this which was not included in the RNS about the agreement with Jabil
Under this five-year, renewable agreement, the Company provides existing machinery on a bailment basis to Jabil and makes no initial capital outlay. Should the Company not order a minimum of 143,000 pallets per quarter, it is liable to a pay an under-production gross-up payment to Jabil to enable Jabil to recover… Read More
They have always been a little scant with the details. I would love to know the expected timelines for both manufacturers to be actually producing pallets. Rm2 reckon they have markets for pallets so let's hope the supply can keep up with the expected demand. The Canadian operation seems to have been very expensive and the Chinese start up costs likewise. As you say it is heartening that Jabil have signed up to the pallets. Perhaps they have seen the order book? Next year will be interesting… Read More
Canadian horror story is costing the firm dear. Lot of big differentials y-on-yr on the balance sheet, most of them not good. Cash position is tricky. Totally reliant on China and Mexico to get their costs down given indicated demand in the report.
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