Short Term Cashflow5 Oct 2022 12:45
Hi!
New to this share and I was attracted by the low PE and 'defensive' characteristics in a recession. Possible value buy at current prices.
However, I wanted to get ppls opinion on short term cash flow/ operability. To me a few red flags were raised in the year end statements: (i) negative working capital (-£30mln) (ii) cashflow (after stripping out the acquisition was -ve / neutral).
Saving grace is that HFD has no debt, so borrowing could be upped to plug the gap. However, it doesn't point to a particularly healthy current situation.
What are people's thoughts?
(I'm completely open to having gotten something wrong, just started researching it!)