I acknowledge that you don't get a company trading at a...

I acknowledge that you don't get a company trading at a significant discount to its net tangible assets without some issues. All part of the game to try to work out whether the risks are in tune with the discount.

Looking through the full year accounts. This business is quite highly geared with an LVR at around 70%. I note that payables are very high and appear to be blowing out over time. Does anybody have a reason for this?

I'm concerned that maybe the balance sheet should have a level of payables - say $80m lower, under normal terms, and so that would leave the cash and CE position at $54m, $40m of which is held as security. So $14m (at a total guess) left in the coffers after possibly angry suppliers are paid very shortly after the full and half year accounts are ruled off on???

Also obviously this would be making the operating cashflow look significantly better than it is.

It could be a bit of a warning sign of a possible cap raise. Comments welcome, as I could see this as a promising investment with lower interest rates etc.

At least inventories have reduced slightly from about $380m in Dec 11 to about $320m in June 12.

I note that property debt was reduced to below $50m after the sale of chapel - does anybody know how much of their debt was property debt in the full year report - as haven't seen anything that breaks the debt down by segment. In the segment info section only $1m out of about $12m was for property finance expense, and 6.4m was unallocated. I worry that the statement might possibly be true but misleading in some way by suggesting that debt levels overall have reduced when they have not.

cheers