Hi Rambo Thanks for your response, but I'm not sure your points...

Hi Rambo

Thanks for your response, but I'm not sure your points really uncover the mystery of the missing cash.

The market update indicated Dec-14 half year results would be comparable to the Jun-14 half year results (trading EBIT of $1.5m). Depreciation should be around $14m, giving EBITDA of appx $15.5m, which is materially(-ish) in line with DH14 OCF of $12.3m

The MD's address at the AGM, highlighted that in the first quarter of FY15, BOL had reduced debt by $2.4m and achieved assets sales of $3.4m.

At 30-Jun-14, the provision for restructuring was $3.6m, so asset sales in the first 3 months would have been sufficient to cover this expense. There was probably additional redundancy costs in the Dec-14 period, but I would expect these are at least partially offset by reduced salary costs.

So, during the Dec-14 reporting period, I deduce BOL has the following approximate cash movements:

Assets Sales: $3.4m
Capex: ??
Improved a/c receivables position: $8-10m
Jun-13 restructuring provisions: ($3.4m)
Dec-14 EBITDA: $10-15m
Net operating and Investing cashflow: $18-25m

Given the market update advised net debt had reduced $9.5m, I'm left wondering what has happened to the remaining $8.5-15.5m by my estimates. The only scenarios I can think of are:

• A large capex spend
• a deterioration of working capital
• A quirky revenue recognition policy
• I've gone wrong somewhere in my calcs.

Anyways, it's not worth worrying about too much now and I'm probably being a bit pedantic. All will be revealed with the accounts out shortly I suppose.