The cash flow statement reconciles net profit to the movement in cash, capturing the investing outflows of plant construction and the working-capital build, and the financing inflows that fund them. Operating cash flow is positive from Year 1 and strengthens as the plants fill and the margin lifts; the cash balance remains positive throughout, though it runs tight during the peak working-capital build, the seasonal revolver is the buffer against that tightness.
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Operating cash flow |
-28 |
43 |
136 |
337 |
577 |
|
Investing (capex) |
-569 |
-663 |
-540 |
-138 |
-91 |
|
Financing |
1,390 |
320 |
10 |
-283 |
-481 |
|
Net change in cash |
793 |
-300 |
-394 |
-84 |
5 |
|
Closing cash |
793 |
493 |
99 |
15 |
20 |
Analyst flagThe cash position is positive but tight through the build
The plan draws equity first, phases debt to match capital deployment, holds a principal grace period through Years 1–2, and defers dividends to Year 3. Even so, the combination of heavy capex and a rising working-capital build takes the modelled cash balance to a thin trough during the peak-growth years. This is the honest signature of a fast-scaling commodity-processing business, it consumes cash as it grows. The committed seasonal revolver, tight inventory and receivables discipline, and milestone-linked drawdown are what keep the position funded; they are conditions of the structure, not optional enhancements.