@gdday Re the US$30m operating cash outflow you pointed out,...

@gdday

Re the US$30m operating cash outflow you pointed out, using the 4C's can give us an idea of its breakdown:

Revenue US$25.9m

R&D US$0.9m
Manufacturing US$28.1m
Marketing US$2.5m
Staff costs US$14.3m
Admin/corporate US$10.m (includes US$4m of one-off merger costs)

Net operating cash out flow of -US$29.8m.



Whats more is that the first 6 months of EMC last financial year (1Jan17-30Jun17) would have seen US$8m in operating cash outflows for US$0.3m in cash receipts.

If you extrapolated EMC's expense to income ratio from the first half to second half... you would have US$18m expenses paid with US0.6m revenues. EMC would have managed total year expenses of US$26m for US$0.9m cash receipts.

What actually happened post merger is in the second half of 31 Dec 17, the Group paid expenses of US$18m (excl $4m merger costs), and generated US$25.6m in cash receipts.

Just an example of what RWL has brought to this business... yet shareholders are fixated on EMC's legacy business, which as you can see from the cash flows in the 4C's ... is not contributing much at all to the business. It is RWL's legacy business that is doing the heavy lifting and going to drive Fluence to profitability in 2019.