The cash/share is $0.3713 now (25.5m/68.68m). Just today's closing sp. I saw the momentum of purchasing Made in NZ products recently, after talking to three carpet suppliers last week. Hope CAV will win the tenders of some government projects. If this momentum continues, then CAV will generate positive cash flow and NPAT F21.
take a little of for restructuring etc . they should be able to pay a big chunk of these costs from cashflow for the immediate future as there pick up plenty of cash flow from selling remaining synthetics also building activity is huge so sales should be strong
The auditors report makes for pretty grim reading regarding future cash flows and performance. It sounds like the property sale is needed to fund operating cash flows. Also, the P&L shows they cannot make a profit from selling carpet given the asset impairments in the last 2 years are less than the reported losses. I'm not seeing any reason to invest but happy to be proved wrong if anyone else has anything to add.
The auditors report makes for pretty grim reading regarding future cash flows and performance. It sounds like the property sale is needed to fund operating cash flows. Also, the P&L shows they cannot make a profit from selling carpet given the asset impairments in the last 2 years are less than the reported losses. I'm not seeing any reason to invest but happy to be proved wrong if anyone else has anything to add.
Yes - agree
I look it this way - this the almost final run for CAV having liquidated bulk bricks & mortar to even get into a position
to be able to pursue the opportunity & put profitable runs on the board.
I guess the Bank of "Loyal Shareholder's Deep Pockets" is available still as another option if things dont work out
for latest initiatives. But if it doesn't pan out, stakeholders are going to be fairly disappointed
All up recent performances and CAV's long downwards spiral has in process destroyed much shareholder wealth & gutted a
once very proud & profitable NZ Manufacturer, as it was during the days of Tony Timpson.
CAV's Board indeed appear to have a good deal to answer for what has been seen over the subsequent years.
Last edited by nztx; 20-11-2020 at 10:30 PM.
Reason: add more
The auditors report makes for pretty grim reading regarding future cash flows and performance. It sounds like the property sale is needed to fund operating cash flows. Also, the P&L shows they cannot make a profit from selling carpet given the asset impairments in the last 2 years are less than the reported losses. I'm not seeing any reason to invest but happy to be proved wrong if anyone else has anything to add.
Maybe it is this bit:
The Group is also exploring opportunities to raise equity funding. At the date of issuing this opinion no equity funding had been obtained by the Group.
also you lot missed that they have 17m of synthetics to sell thru yet. so 25m from property sale + 17m? of synthetic carpet inventory sales so maybe 42m cash less restructuring costs by mid next year ?
also the cashflow should be read on the basis of trading going forward not the historical accounts in the annual report
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