As much as I like what CDY is trying to do, I'm with Soud on...

As much as I like what CDY is trying to do, I'm with Soud on this....plus some!

Just compared these latest numbers with the past couple of 2016 & 2017. Without boring everyone with too many details - I am disappointed with the following:

- Liquidity ratios: (both Current & Acid) are continuing to slide downwards. If it continues, solvency will come into question.
- Profitability ratios: Whilst GP margin is stable, it is pleasing to see a continual drop in the NP margin (currently negative). However, the ROE is continuing to deteriorate badly.
- Efficiency ratios: These are also declining unacceptably and, as Soud stated, is due to the poor cash management. Of particular concern is the very poor management of receivables. Although the Creditors are being paid 20% quicker (now 82 days)...the Debtors collection is well over 100% worse (now 55 days...from only 25 days last year!).
- Leverage ratios: Although the Interest Cover is still not good, it has halved from last year. But, of major concern (to me anyway!) is the Debt to Equity ratio has worsened by nearly 200%.
- Bad Debts: Although not large in $$ terms, they have still increased by over 300%.
- Other expenses are up by over 91%. I would like to see more details of what these are as the $$ is big. I am sure nothing is being secreted here....
- Shareholder Equity is down by over 50% - which speaks for itself!
- The Balance Sheet overall is looking severely weakened unfortunately.

It disappoints me that the management report only seems to focus on the positive numbers and achievements and gives no commentary on the negatives. For example, they highlight the sales revenue is up by 25% but don't explain why the cash receipts are only up 12% and how they are going to manage this worsening of receivables.

Another concerning thing for me is that although the above ratios tell me a sombre story - the employee benefits continue to increase.

All that said, I will not be looking to sell my holding at this time - for the reasons I have set out on the other threads.

Come on management.....I think you can fix a lot of the above issues - without simply taking the view that more sales only will be our saviour.

NOTE: Sorry Leverage, I am not quoting your ratios above!!