RE: 10p25 Nov 2021 14:15
Not with this level of debt 4C , it’s why I didn’t buy it years ago before the debt restructure. The banks hold the cards and have allowed the company time to turn things around but with the caveat that they raise another $50m before the end of 2022. Cost of sales was around 70m and will go up due to inflation pressures, admin around 5m, they’ve achieved cost savings mainly due to head count reduction. So even with the high ebitda it doesn’t leave a lot to pay off much debt when you take into account the interest on the loan, which will ratchet back up within 12 months, still leaving a mountain of debt. All though they are heading in the right direction getting into a profit even if the accounts are a tad skewed from the last 2 years. Do they have enough time to NOT raise these funds though, i very much doubt it. Like I’ve said with the guidance given what will now raise this sp to allow them to not raise the funds in a highly dilutive way to shareholders or at all? We can all claim the plus points with the rose tints on, some even claiming they won’t need to raise the 50m because they’ll have 70m in the bank ! It’s the negative side of things that will give you the slap when money is lost not profit missed which others seem to claim, hence why I always concentrate on the negatives. I really don’t know why people need to spit their dummies out, maybe it’s so they can jaw off with insults, who knows.