RE:RE:RE:capital allocation - mathHermannHaller wrote: Only? But why would they keep a high cash balance when they have a revolving credit facility? (which the paid down by about $9 million during 2021)
Also, as in my last post, they generated $26 million in free cash flow for the year, that is over $2 million per month coming in. Part of this should be going to buybacks IMHO.
Capharnaum wrote: They still only had a bit over $6M in cash at the end of Q4 with an income tax charge of over $4M coming up.
$6M isn't a lot of cash in the bank with a tax payment of $4M due (net is $2M!). That doesn't even consider they may have capex/maintenance costs that aren't weighted through the year.
Plus, if they want to make an acquisition, they'll need to firm up that cash position, otherwise it will be limited to their debt facility and it will impact the ratios (including leverage).
I know you don't care about debt (at least, you don't seem to care), but I do think they should be cautious with their use of cash. I'd like them to lower their reliance on envelopes further which would lower the long term risk for shareholders (invest for the future) instead of using every cent they earn to return money to shareholders. It's just my personal view obviously.