big win, page-7

Hi Butcher, bvw and all

Last night i had a look at CBDs figures broken down into half years for Dec 09, June 10 and Dec 10. (if you are allegic to accounts, skip this post.) Some results are (Dec 09 to Dec 10):

Revenue: 5M, 39.8M, 74.2M
Op Expenses 6.4M, 25.8M 63.8M
Net -1.4M, 14M, 10.4M

Looking at Cashflow, there is a similar story, but with a negative total:
Cash Receipts 7.6M, 32.5M, 63.3M
Pay suppliers and (all) employees
9.4M, 35.8M, 66.6M
Net -2.1M, -3.5M, -4M

Predicatably, receivable have increased from 3.3M in June 09 to 17M in June 10 to 27.5 M in Dec 10.

Without too much explaination, basically, this is a company growing too fast for its own good. Companies can actually go broke growing too fast, much to the surprise of the salespeople. Not saying this will happen with CBD. But they now have cash of 5.2M and Trade and Payables (current and non current) of 21.5M. (Against receivables of 27M, true, but they need the receivables converted to cash urgently) Also their operating profit margin is very small (as they dicuss in the recent accounts). They certainly need to decrease their input costs, as they propose. I certainly would not be taking on a new $145M project when the cahflow position is so negative, as bvd points out.

I'm still positive on CBD, but nervous.