Smiles Inclusive cash flow statement missed the mark by $1.1 million

Smiles Inclusive cash flow statement missed the mark by $1.1 million

The situation at Smiles Inclusive (ASX: SIL) has gone from bad to worse, with an amended quarterly cash flow statement showing the struggling Gold Coast-based dental company has much less cash than previously thought.

With its shares already suspended from trading, a March quarter update released on 30 April claimed the company had net cash from operating activities of $500,000.

It now turns out the real figure was a cash outflow of $614,000, representing an error of more than $1.11 million.

For most companies on the ASX a mistake of this degree would mean little, but the 1.1-cent per share sell-off from founder Mike Timoney indicates the group is only worth $1.59 million. 

Smiles also corrected its cash for the end of the quarter to $145,000, whereas it was previously reported as $242,000. 

The new cash position equates to 0.236 quarters worth of funding available, which would seemingly indicate Smiles' money ran out around 21 April.

The group has a history of making announcements that underestimate the problems at hand. In September last year the company reported an unaudited $19 million loss for FY19, only to have that figure inflated to a loss of $31 million a month later.

This year Smiles' CEO and CFO have both left the company, which in its darkest hour is now being led by Michelle Aquilina.

In an exclusive interview with Business News Australia recently, founder Mike Timoney spoke highly of Aquilina, but he believes it would be a miracle for the company to survive. 

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How citizen developers can help save Australian businesses from IT skills shortage
Partner Content
Warnings from business leaders across Australia, including Coles CEO Steven Cain, have ...
Mendix
Advertisement

Related Stories

Fitness First parent divests franchise division of Jetts Fitness via management buyout

Fitness First parent divests franchise division of Jetts Fitness via management buyout

Jetts Fitness Australia CEO Elaine Jobson has led the acquisition o...

Universal Store buys Byron Bay fashion brand THRILLS for $50m

Universal Store buys Byron Bay fashion brand THRILLS for $50m

After working alongside Universal Store (ASX: UNI) for nine years, ...

Superloop seizes on education recovery with $50m deal for student broadband provider VostroNet

Superloop seizes on education recovery with $50m deal for student broadband provider VostroNet

Bevan Slattery-founded internet infrastructure provider Superl...

Hogg quits as The Star’s acting CEO just days ahead of Queensland casino inquiry findings

Hogg quits as The Star’s acting CEO just days ahead of Queensland casino inquiry findings

The depletion of The Star Entertainment Group’s (ASX: SGR) ex...