CAT will be cashflow positive........in FY24.

The most frightening implication of this announcement is that there was some possibility that they wouldn't be FCF positive in FY24. Are management tone deaf?

The cashflows are too far out for my liking and I have very little faith in my ability to forecast what those cashflows might be. Really hard to tell what "capex" is actually capex IMO.

Does someone still have a differing view on CAT?

Some good coverage has been given to CAT recently so I won't delve into any of the numbers. There was a clear expectation from shareholders that some FCF would start to come through. Management went in completely the opposite direction and spent large on growing ACV.

I'm willing to accept that management knows what's best in the long run. What I couldn't accept is a capital raising to fund an acquisition after having pursued the strategy of growing ACV at all costs. This would be the ultimate deal breaker for me.

Management need to prove this can continue to grow revenue >20% and stop haemorrhaging cash whilst they do it.

Todays announcement is further evidence that shareholders just want to see the proof in the pudding.

The frequent roll out of announcements that mention very little by the way of numbers are wearing very thin.

The only thing that will satisfy the market is some solid numbers.

I found most of the half year results pretty unhelpful.

The cashflow statement shows that if not for R&D and the SBG Acquisition that FCF would be roughly even versus the prior half year results.

With some scaling it's not too hard to see how this could be trading at a 20x FCF multiple in the next few years but I have no conviction.

Recent announcements have been very promotional in my opinion and the verdict is still out on management.

Will be keen to see others insights.