RE: Long term holding views8 Mar 2022 23:52
Haggis you say you work in finance - this statement is clearly misleading investors here.
Lease on HFC systems will not be financed by AFC's cash, it will be, like any office equipment of company cars etc, financed by a lease finance company, that pays AFC IN FULL for the product when it is delivered to the client (possibly including all future annual maintenance payments), from then on the leasing company gets its returns and interest in payments from the client.
AFC will bear the full cost of each system - they will spend the money and capitalise the cost - cash will decrease. Now explain it properly or shut up. I just wonder how much has been capitalised relating to the "L" series, which by all accounts needs to be written off, after all non have been sold. Remember the roadshow demonstration, that cost over £4m and is still being depreciated - this was never commercial!! Window dressing - now you know why I think more cash will be needed for any meaningful progress.