Finweek English Edition - - Openers - EDITED BY MARC HASENFUSS

SHARE­HOLD­ERS in cloth­ing and tex­tile con­glom­er­ate Seardel would have been shocked to see the group’s cash­flow state­ment re­flect­ing an out­flow of over R210m for the half-year to end-De­cem­ber.

This left Seardel with a mere R1,5m of cash equiv­a­lents at the end of the in­terim pe­riod – com­pared with R160m at fi­nan­cial year-end June 2006.

It seems debtor pay­ments of R53m due on 31 De­cem­ber 2006 were only re­ceived in Jan­uary 2007 be­cause of the ex­tended New Year week­end.

Fin­ished goods for or­der were also held pend­ing de­liv­ery in­struc­tions from cus­tomers at end-De­cem­ber, which hit in­ven­tory lev­els (re­flected as R828m) and ob­vi­ously cash flows, too.

Seardel direc­tors re­as­sure us that cash flow and in­ven­tory mat­ters are ex­pected to nor­malise dur­ing the sec­ond half. So there’s no rea­son to fret about Seardel’s year-end div­i­dend

pay­out, is there?

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.