Is this an undervalued stock?, page-22

Hi Grindstone

Welcome. Great to see someone new offering some thoughts on this stock.

Half of the 44 in debt is related to the borrowings from the directors which matures in 2017. From what i can tell it is sitting as cash on the company accounts (has not been spent as at half year). Theres also another 6 mill in loans owing to the directors which has been booked as a current liability. It is not clear if this has been sit, but given the company is booking 36mil in cash it would suggest this hasnt been spent. The other liabilities are relatively small and appear to be the usual money owed to suppliers etc.

after factoring in the different liabilities including all 44mil in borrowings, the equity in the company is still 16 mil. The 16 mil remaining should be the noncurrent assets on page 7.

Keen to hear your thought on the reading the accounts the same way i am??

The question is whether the directors are parking the money to acquire a commercial interest rate and/or the money is kept there to keep the company solvent and/or reservese for future expansion?? I personally think it is for all 3 reasons. I dont mind the commercial gain aspect for the directors provided it is done in the interest of all stakeholders and it provides future value