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AustinPowers007 t1_jae7wzf wrote

might have some juice in there but damn its way too hard for my smooth brain to formulate an hypothesis on them, that annual financial report is a fucking nightmare to parse

Edit: a DD on them based on cash flow debt maturity and facilityes and explaining all those liabilityes with acronyms would be nice af else its a pass based on complexity

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New-Sky8027 OP t1_jaeatwq wrote

£505M free cash flow responsible for the latest and recent hike. Most of their money is from engine flying hours which are recovering. But I’m here because of Small Modular Reactors, worth some research.

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AustinPowers007 t1_jaedaow wrote

problem isnt their opperations which look positioned in perfect place problem is with their debt and contract liabilityes which amount to huge sums and are kinda hard to dissect and compare it to FCF per year to know the amount of refinancing that will be needed until liabilityes are under control; this year they made huge FCF but in the end ended in negative cause liabilityes.

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[deleted] t1_jaf2559 wrote

uk gov will never let them go under and they have a golden share

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New-Sky8027 OP t1_jaefod4 wrote

Debt is fixed at a low rate from years ago and so getting cheaper with time.

All companies operate with debt, and RR is expected to improve to £800M FCF for 2023. None of this is a threat unless international flying stops altogether.

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ethanhopps t1_jaeuhp4 wrote

I've been looking into smrs since the idea surfaced and while I love it, it's never going to be a money making endeavor from a stock investment standpoint. They'll probably be a relatively small part of rolls business and they'll continue to be a nightmare of legislation and regulation, they aren't going to be popping these things in like a Toby's every couple weeks and have the check in the mail by next Tuesday.

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