Meridian Unplugged - Powered by MrTechGuy.co.uk Forums Discussion Meridian - Systems Are we doing ourselves 'no favours' re: S/H M Equipment ?

MalcolmW

The purchase of the factory (a one off expense) was funded by the sale of the royalty stream (a one off gain). The bank debt is "on-top" of that. The underlying business still burnt nearly �1m in cash before all of that. Here's how the cash moved in 2005 (summary)

� (841,000) Cashflow loss from operations
� (173,000) Interest paid on debt
�(3,909,000) Purchase of factory
� 1,455,000 Sale of old factory
� 3,023,000 Sale of Royalty stream
� 53,000 Tax rebate
-------------
� (392,000) Net cash shortfall

� 1,966,000 New debt


Would love to see the latest numbers from the Mothership and give them my "expert" advice .... that's my day job.

PS - They spent the same amount on R&D in 2004 as in 2005. It is normal to spend a certain % of revenue every year on R&D so they will have to keep spending this to stay alive.

Andrew