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Another example is Revenue is recognised with the cost so you pay for a flight BA has the money but you don't fly for 3 mths, they recognise the revenue (income) when you fly not when you pay them, but they recognise the cash in the bank imeadiatly with a seperate provision for defered costs/income.
So your sums are just incomplete vs the full picture.
I am a chartered accountant with 25+ years experiance by the way .... Who can't type or spell! lol
That is why you need a 1/4 cashflow to inslud things like Creditors change / debotors change / tax liabilitys / asset pruchases .
Reprotede revenue is not cash flow for the period there can be lots of timming differences, which are shown and reconciled in the cashflow.
There is no balance sheet to see all the movements .... You not looking at a complete records.
Link me a 31/12/23 and 30/09/23 balance sheet and i show were it is has gone.
It could be tax for instance ....
Its (2,762) and it is in the accounts page 17.
https://www.iairgroup.com/media/4dujaawh/full-year-results-release-for-the-year-to-31-december-2023.pdf
Looking for the consolidated cashflow for q4 will show you where it has gone, but think it is only annualised.
Page 26/27 is what you are looking for.
Https://www.iairgroup.com/media-centre/press-releases/
Look at it it is striking there i not forward looking business plan... WTF are the SMT doing?
https://www.iairgroup.com/investors-and-shareholders/investment-case/
Is all historic .....
The only planing is under sustainability...
No wonder this is strugling...
So they say in the accounts they are delivering there Stategic highlights but can someone please point me at the plan they are measuring this against as I just can not find one...
How can this be strategic if there is not stragic plan?
Where is the business plan??????
Strategic highlights
• Capacity growth in 2023 of 22.6% vs 2022, focused on our core North Atlantic and South Atlantic markets
• Revenue and cost transformation initiatives driving improvements to our customer proposition
• Our Spanish businesses delivered €1.4 billion of operating profit (2022: €0.6 billion), highlighting the greater balance in our
portfolio
• Our highly cash-generative, high-margin IAG Loyalty business grew profits by 17% to £280 million, adding 4.9 million new
members (17% increase in new members) during the year
• Quarter 4 2023 operating profit before exceptional items of €502 million (quarter 4 2022: €477 million)
• Continued investment in our people, with 13,000 new colleagues hired in 2023
• One third of our sustainable aviation fuel target for 2030 is now committed
Https://www.ft.com/content/bac81f2f-8f58-497b-87db-4e9c1fdd17f9
https://www.independent.co.uk/business/british-airways-owner-soars-to-record-annual-earnings-on-travel-boom-b2504519.html
https://www.bloomberg.com/news/articles/2024-02-29/iag-fourth-quarter-profit-doubles-sees-higher-capacity-in-2024
https://www.marketwatch.com/story/iag-says-travel-demand-remains-strong-as-net-profit-surges-update-fe36d708
Https://www.iairgroup.com/about-us/
Where is the business plan?
Sitting on cash making 3-4% when the bussiness is making 25% ROi is just redicuilious. It s a drag on ROI and shareprice.
They have one job, make shareholders value, and they are quite clearly failling at that for he moment.
Another way to approach the IT infustructure probelems they have it is to buy, a much smaller airline, with an established, marketing leading, scalable customer service IT infustructure, that way they remove most of the risk, get something up ans running much faster with inhouse skills, and just roll it out across the all of IAG over time.
It is like it is being run by civil servants at the moment.....
They quite clearly did not need to dilute the shares that much at the time, or they would not have 12b in cash now, or at least they could buy thoes shares back cheaply now, before they rise too much. Hence using a share buy back...
1b share is about 1.6b bought back and should push the shareprice up by around 20%.
It is great shareholders value, 20% return vs 3-4% sitting on the cash.
The way they are going they are going to lose this significant long term retail investor and if i am thinking that i am far from alone. They need to get the company's share price back to precovid levels as a priority which is around 2.40 taking into account the shares diluotion that happened. Sitting on 12b cash is just not going to do it as it is doing nothing sitting there .. maybe earning 3-4% which is rubbish with a company about to post a EPS of 37p making and therefore making an ROI of around 25%.
Sorry MGMv12 i just dont agree at all, and have considerably more than 50K in here.
IT feels like the company is run too centerally, so simple projects like the BA website are not happening... they are trying to do everything stragitically whihc means the company loses its agility.
They have had years to sort of the woefull BA website, and the money to do it but where is the investment? Instead they have 12b in cash in the bank. It is the directors job to maximise sharholders value everysharholder and this massive customer service IT investment they are taking about is going sap the life out of everyone, incremental continous changes are a much better way to make a steady increase in shareholders value and if one project going off it really does not matter as there is another 20 projects going on.
Big companys should try and run like lots of little companies as it imporves the staff retention, engagement and enthusiamsum. Which in turn improves customer engagment and service, as well as maximising/leveraging the talents of existing staff memebers.