DROWN­ING IN DEBT

Finweek English Edition - - INVESTMENT -

BSI Steel re­sults showed rev­enue mov­ing higher but prof­its fall­ing as costs rose. Look­ing closer, the cash sit­u­a­tion is dire – granted, BSI has mostly stemmed the mas­sive cash out­flow, but it has net cash of very close to neg­a­tive R400m with a R447m over­draft! This is al­most the com­pany’s mar­ket cap and some four times larger than the com­pany’s EBITDA profit and needs ur­gent at­ten­tion.

BSI Steel

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