At first glance this looks like a very dissapinting 1st quarter result. However, a closer look is a bit more encouraging.
CBD's reported operating cashflow of negative $80,000 almost gave me a heart attack - after the $5.6M comparative figure for all of 2009/10. However, they have not included RECs received, and they have applied to the Regulator to have $3.2M of RECs "cashed out" (RECs are currently cheap, so they were probably waiting for a better price, but could wait no longer. Origin energy, for example, is hoarding its RECs, presumably for a better price environment).
The $28M Receipts form Customers compares well with the $40M for 2009/10, but the money was almost all spent on new solar stack costing $25.4M, compared to $45M for all of 2009/10. (The $28M is more than the $17M trade receivables listed on 30 June 10, which is a relief.)
While this expansion is good, at some time they have to take a breather and catch up with some positive cashflow. The recent bungled change to feed in tarrifs in NSW may help to slow down sales in that state.
Still, it would be good to see positive cashflow literally "in the bank".
I think I have this right? Any thoughts?
CBD Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held
