Be careful - debt is actually materially higher than it seems....

Be careful - debt is actually materially higher than it seems. They have about $40m of capitalised guarantor fees which get added to the balance (these are clearly spelt out in the latest 4D but do not get included in the debt figure. They will continue to rise right up until December when the loan matures).

They are also at a low debt point in the annual cycle in their 31 Dec report, which means that come June 30 you will see a MUCH higher debt number. That much is obvious because whilst they lost $5m EBITDA in 1H, they are guiding a loss of $20-25m in 2H... there's only one way to fund those losses!

Don't just take my analysis for it - they have just said they need a $250m facility... if debt was sustainable at the misleading $30m net debt referred to above then this would be a ridiculous ask.