Ann: Jackgreen sets sail for 2010 results with ca, page-4

re: Ann: Jackgreen sets sail for 2010 results... Interesting

Who was the $1m debtor? BBP? For their power bill? Gross payables 11.921 at half year, so was significant relief.


OK, 2.5m cash, coupon 12% so it will add $300k to cash outgoings per annum, 75k per qtr.

From the 4C statements,

Quarterly (All $ in 000)

Employees
September...-1226
December.....- 891
March..........- 952

Running rate say -1000.

Advertising and leases
September...-745
December.....-673
March..........-460

Running rate say -500.

Net Customer Receipts (Customer receipts less other working capital, item 1.2(e) in the 4C
September...+ 238
December.....- 126
March..........+ 947

This is obviously the big question mark. Can they recover the money their customer owe them? Or do they just keep growing working capital deficits?

So, Running rate say + 300.

Therefore

Running rate quarterly
Employees ...........-1000
Lease & Advert.... - 500
Net Customers.....+ 300
Interest..(new).......- 75

Estimate burn rate -1275

$2500k will therefore last 6 months, assuming the advertising expense was reduced in the cash tightness of the last 2 months (while they were suspended).

So, the new $ will allow them to reach fiscal 2010 it won't allow them to reach calendar 2010.

If the wholesale market stays low (as it was over summer)then they might get another 600k (the difference between +947 net customer and the estimated running rate of +300 net customer). So, another 6 weeks of grace, give or take.

Unless the directors can announce actual results (or credible plans) for improving cash burn.

IMO, not enough information.