Originally Posted by
Popeye
I wonder if the market has found the guidance level of FCF a bit underwhelming. Based on F23 dividend level of $17-23m being "the upper end of the range" (ie. 80% of FCF), the implicit FCF range is $21m-$29m. So circa $15-20m down on F22 ($43m), presumably due to expected F23 capex of $60-75m, which is in turn $15-20m up on F22.
It probably comes down to the view on whether this capex is likely to grow the business or not, and how much of it will be recurring in the future. Just how much cash is this business likely to generate in future, is this as good as it gets?