OHLA - Go With The (Cash) Flow - Model Update

In construction, profits can diverge from cash flow for years. OHLA is a prime example of this, having gone through two major recapitalisations in the last 5 years, but its financial architecture remains complex. Seasonal working capital swings, costly debt, dependence on bank guarantees and several potential liquidity catalysts all intersect, and the next 6-9 months could prove pivotal. The question is whether improving operations and disposals can translate into sufficient financial flexibility to navigate the challenges ahead. There are several moving pieces, and the order in which they fall into place may matter just as much as the outcome.