SEW UP THAT CASH FLOW
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?